Spring into action with a clean to your home loan
There’s no time like Spring to do a home loan “clean out”. If it’s been a while since the last review of your financial situation, you may be spending more than you need to. Find out the benefits of reviewing your home loan.
A common thought is that taking out a home loan with a particular lender means being bound to that lender for the term of the mortgage. This is not always the case. Most buyers want a better home loan deal but how many actually ask for it? A study by finder.com.au found that 82% of Australians who looked for a better interest rate got one.
A seasonal home loan review can help to gain perspective and save money on your loan. Here are some evaluation questions that can be asked;
- How has my situation changed since taking out the loan?
Perhaps there’s been a car upgrade, new credit card or other small loans.
- What are my monthly mortgage repayments? Look at a home loan repayment calculator to see what you pay over the life of a loan.
- Can I get a better interest rate on my home loan?
Comparing what interest rates different lenders can offer.
- Can I get a home loan that better suits my needs?
Exploring different lender options and products.
- Will there be an exit-fee to change home loans?
Weighing up the costs of switching products.
- Will there be any foreseen changes to my circumstances in the next 6-12 months?
You might be looking to start/expand the family, upgrade the car, change jobs or move house.
Whether you’re currently paying interest only but want to start paying off principal, or even just shopping for a better interest rate, consult a mortgage broker to find out if there is a more competitive loan out there. They can access a wide panel of lenders and review a selection of home loans to compare different products that are right for your situation.