When did you last spring clean your home loan?

August 14, 2015
Chris Chivers

With spring just around the corner and interest rates hovering around historical lows, now may be a good time for you to give your mortgage a much needed spring clean and make sure your current home loan is still the most suitable product for your needs. 

I think an annual “de-clutter” never goes astray and often you uncover financial aspects of your life that need some reassessment or need to be changed altogether. 

Now’s a good time with interest rates sitting at historical lows and Australia’s lenders actively competing for business through sharp pricing (for owner occupiers), significant discounts and other incentives, you may find a simple spring clean of your mortgage can save you thousands of dollars.

So take a look, you may find you are in a perfect position to refinance your mortgage and make some adjustments, which may allow you to repay your home loan sooner, and ultimately achieve your next financial goal sooner. 

Refinancing can be a great way for you to lower your mortgage repayments, consolidate your debt or even access equity in your home to purchase an investment property.

 Try these simple tips as a starting point to give your mortgage a spring clean: 

 

  1. 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 mortgage. Every little bit goes a long way to reducing your debt, saving on interest payments as well as time off the loan term.
  2.  Get to know your mortgage: Research showed more than half of Australia’s mortgage holders do not know their mortgage interest rate. It is one of the biggest financial commitments a person can make, so it is good to know all about it.
  3.  Consider the mortgage product 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.
  4.  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.
  5. Get a home loan health check: Why not get an expert to take a look? A reputable Mortgage Broker can not only help you understand what home loan features are available, but find a solution that best suits your needs.

 

So why don’t you check you’re still doing the best thing by your mortgage and give me a call or click "contact us online" above.

Posted in: Tips

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