Mortgage Choice –Eight Mile Plains info series
When did you last spring clean your home loan?
Low rates encourage borrowers to review their loan
Spring is here and interest rates are hovering around historical lows! Now may be a good time for you to give your home loan a much needed spring clean and make sure it’s still the most suitable product for you.
At Mortgage Choice Eight Mile Plains, Bob Korver and Vicky Bleathman say that giving the home loan a spring clean each year can often end in a pleasing results.
“A good de-clutter never goes astray and often borrowers uncover financial aspects of their life that need some reassessment or to be changed altogether,” Vicky said.
“And with interest rates sitting at historical lows and Australia’s lenders actively competing for business through sharp pricing, significant discounts and other incentives, borrowers may find a simple spring clean of their home loan can save them thousands of dollars.”
According to Bob, borrowers who give their home loan a spring clean may realise that they are in the perfect position to refinance -“Refinancing may allow borrowers to repay their home loan sooner and ultimately achieve their next financial goal sooner”.
“Further, refinancing can be a great way for borrowers to lower their loan repayments, consolidate their debt and even access equity in their home.”
Bob and Vicky offer the following tips as a starting point for those borrowers wishing to give their mortgage a spring clean:
- Look at your past year’s budget: Investigate what aspects of your spending you can move around so you can add extra dollars to your repayments. Every little bit goes a long way to reducing your debt, saving on interest payments as well as time off the loan term.
- Get to know your home loan: Recent research showed more than half of Australia’s mortgage holders do not know their interest rate. It is one of the biggest financial commitments a person can make, so it is good to know all about it.
- Consider the mortgage features: Does your loan have a range of features you don’t use? You might be able to switch to a ‘cheaper’ loan with fewer options. Or, you may benefit from a loan with more features, such as an offset account.
- Look into debt consolidation: If you are struggling with a range of debt repayments, rolling your other debts into your mortgage can help you to pay less each repayment period and gain some peace of mind. However, remember that those debts will be stretched over a longer period i.e. your entire home loan term.
- Get a free home loan health check: A free home loan health check from a reputable mortgage broker Bob and Vicky at Mortgage Choice Eight Mile Plains, can not only help you understand what home loan features are available, but find a solution that best suits your needs. There is no obligation, so why don’t you check you’re still doing the best thing!
For more information contact Bob Korver on 0408 050 378 or Vicky Bleathman on 0403 152 390 from Mortgage Choice – Eight Mile Plains or visit https://www.mortgagechoice.com.au/bob.korver
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.