New data from Mortgage Choice's Happy As Index found less than 50% of mortgage holders plan to review their home loan within the next 12 months.
Given that many of Australia's lenders have recently cut their rates to 60 year lows, now really is the perfect time for those with a mortgage to review their situation and make sure they are still in the right product for their needs.
After the Reserve Bank announced it would cut the official cash rate by 25 basis points at its February Board meeting, many of Australia's largest lenders were quick to follow suit, trimming up to 30 basis points from their respective standard variable rates.
With that said, if you have been in the same mortgage for the past few years, it makes economic sense for you to review your home loan.
By reviewing your mortgage you may not only find that there is a better product for your needs, but you may find you are able to save yourself thousands of dollars in mortgage repayments over the life of your loan.
Say for example, you currently have a $300,000, 30-year mortgage with an interest rate of 5%, if you were to review your mortgage and ultimately shave just 25 basis points from your interest rate, you could save yourself over $16,000 in interest over the life of your loan.
Of course, before you attempt to refinance your mortgage, it is important to do your due diligence and research what options are available to you.
Many of Australia's lenders are offering significant discounts at the moment, so don't just take a lender's standard variable rate on face value as it may be possible to secure a much lower rate.
Once you have done your due diligence and researched what is available on the market, it pays to speak with a professional.
Your local mortgage broker can help you to secure a sharply priced home loan that is right for your needs.
Furthermore, they can do all of the paperwork and liaise with the lender on your behalf, usually at no cost to you.
Visit www.MortgageChoice.com.au for more information or to speak to a home loan expert, call us today on 13 77 62.