7 reasons why your mortgage sucks (and what you can do about it)
Dreaming of that gorgeous beach house, edgy new kitchen renovation, or perhaps that investment property you said you’d buy ten years ago? With mortgage repayments, not to mention school fees, bills and other living expenses, it’s easy to get overwhelmed. That holiday house, Europe trip or investment property, however, don’t have to be pipe dreams, and seemingly small, subtle changes made now can turn into big wins down the track.
With Australia boasting the third most expensive housing market in the world,1, you would think the average Aussie homeowner would be mortgage-savvy. Alas, as many as 83% of people are paying too much on their mortgages2 (with more than 3 million mortgages in Australia3, that’s roughly 2.5 million mortgages that, well... suck). Despite interest rates being lower than ever and one-quarter of mortgage holders experiencing mortgage stress, a whopping 39%4 have not switched lenders in over a decade!
So, could you be better off? Here at Loan Market, we’ve done the maths and the answer is yes, you probably could be. Your mortgage doesn’t have to suck, in fact, chances are that a change as small as a 0.5% reduction in your interest rate could save you a tonne over the life of your loan. Our quick and easy seven-step checklist will show you how to get the ball rolling and give you the resources and support you need to turn the tables on your mortgage and make it work for you:
The seven step checklist
- Negotiate a better interest rate
- Shift from monthly to fortnightly repayments
- Small sacrifices now = big wins later
- Get a mortgage offset account
- Be smart with your equity
- Watch out for hidden fees and negotiate
- Make sure your loan is “portable”
This seven step checklist is about making your life easier and, with the help of experts, getting your home loan under control so you can build on your savings. For more information on how to put these steps into action, access our complimentary ebook, get your mortgage sorted and start working towards those dreams, they’re closer than you think.
As with any financial scenario there are risks involved. This information provides an overview or summary only and it should not be considered a comprehensive analysis. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs.