November 14, 2013
It pays to reassess your mortgage – and here’s why!
The market has changed a lot in the last few years and the home loan you currently have may not still be the exact one for you. Don’t be afraid to come back to Mortgage Choice Port Melbourne to check if you could get “a better deal”!!
Never be complacent about a major financial commitment! Your home is probably your best asset so chances are you keep it in good shape – the same care should apply to your mortgage – and indeed your insurance over your asset! You need to be sure you’re still getting the loan that’s right for you at the most competitive rate. If you’re paying just 0.25% more than some of the cheaper loans available, that difference can add up to thousands of dollars in wasted interest payments over the life of your loan. By getting a lower interest rate, it means you can pay what you're currently paying each month, but could reduce the term of your loan – and this means saving you interest!
Life has a habit of never standing still! Maybe you weren’t in a position to make extra repayments when you took out the loan - but perhaps now you can! So extra fee-free repayments, no-fuss redraw or an offset account are good loan features to assist you to make the most of your loan – and your home!
You could have valuable “equity” in your home! “Equity” is the difference between what you owe on your loan and your home’s estimated market value – this is a most valuable asset and one you could utilise to fund an investment property (or home improvements). So always worth the effort to contact your friendly Mortgage Choice Broker to review your loan at least once a year! It costs nothing to check – and you’ll walk away knowing you’ve still got the right loan for you – or have an idea of how your loan could be improved for a more suitable “deal”!
Time to lock in a split loan with part fixed & the rest variable? If considering fixing part of your home loan, you should act right now! Some lenders have already moved upwards on their fixed rate products. Even though the RBA’s official rate remains at a record low of 2.5% and could still come down, some Lenders have increased their fixed rate loans by approx 20%. Even though variable home loan rates are influenced primarily by the RBA’s rate movements, fixed rates are different as their pricing is driven by longer term expectations. It’s prudent to lock in a fixed rate to have the certainty of payment and peace of mind rather than a speculative play on which way rates may move.