When was your last home loan health check?
Circumstances can change, leaving your home loan less suitable than it was originally. A home loan health check can reveal if you’re paying too much.
1. What’s involved?
Your finance broker can do a full home loan health check for you either in person or over the phone. They will check if your loan is still competitive and still suited to your individual needs.
Having an expert do this for you can also take the stress out of the process for you. It is advisable to get this check done at least once a year, or if your circumstances change.
2. Questions to ask
Be aware of what you want checked. Think about the following when you speak to your broker:
Am I paying an unreasonably high interest rate?
Am I paying high fees?
Am I happy with the service I receive?
Does my loan give me the features I need?
Am I paying for features I don't use?
Have my financial circumstances changed?
3. Benefits of keeping up to date
A home loan health check will generally cost you nothing and could save you thousands. Your home loan features could be improved, or you could find yourself with a lower interest rate. A better payment structure could also be introduced, making your repayments more manageable.
Checking the state of your current loan could uncover the possibility of taking out additional finance, which can consolidate any other debt you may have, or help you purchase an investment property.
4. Consider refinancing
When circumstances change, it's important to consider refinancing. Refinancing involves replacing an existing loan with a new one that offers improved terms. Whether due to a job promotion, lower interest rates, or financial challenges, reevaluating your loan arrangements can be advantageous.
Refinancing can potentially lower your interest rate, decrease monthly payments, extend the loan term, or switch from an adjustable-rate to a fixed-rate mortgage.
By assessing market conditions and seeking guidance from a financial advisor, you can make an informed decision about refinancing to better align with your new circumstances.
5. Speak to a mortgage broker
Refinancing is not something to take lightly, as many things should be considered. The current value of the property is also taken into consideration, if you speak to a broker, they will have access to current data that will indicate what your property is likely to be worth. They can also inform you if obtaining a lower interest rate from your current lender is possible without refinancing.
Paying too much for a home loan?
See how we saved customers more than $6000 per year, just by reviewing their home loan.
