October 09, 2017
Choosing your home loan doesn’t mean you are stuck in it forever.
With the cash rate so low, now is the perfect time to see if you could save on your current home loan. In fact, you should be checking your home loan every 2 years to match changes in bank rates and make the most of any new loan products on the market.
However, ask yourself these questions before considering a refinance of your current loan:
- Have your financial circumstances changed since taking out the loan?
- Do you have an interest only loan?
- Are you looking for a ‘cheaper’ loan option?
- Are you looking to repay your loan sooner?
- Are you planning to have a family?
- Are you planning to renovate your property?
- Are you planning to downsize or upgrade your property?
- Are you considering purchasing an investment property?
- Are you considering consolidating debts?
If the answer to any of these questions is ‘yes’, refinancing your loan may be a worthwhile consideration. Even if you are not sure what the answer is, we can help you explore your options.
Do your research
Before you attempt to refinance your mortgage though, it is important to do your due diligence and research what is available to you - this includes looking beyond the interest rate alone. Many borrowers will look to refinance with a lender that boasts the cheapest interest rate, but just because they have the cheapest rate doesn’t mean their product is the cheapest loan overall or the most suited to your needs.
Before making any decisions, it is important to investigate the various fees each lender intends to charge. There are many kinds of loan fees borrowers may incur, including application fees, monthly account fees, redraw fees, additional repayments fees, rate lock fees and break fees.
Mortgage Choice offer a free home loan health check to see if refinancing could save you money.
Your local Mortgage Choice broker will compare your current loan with hundreds of loan products to make sure you aren’t paying too much, and have the loan extras you want. It only takes a short amount of time and could save you money.
By reviewing your mortgage you may find that not only is there a better product available for your needs, but that you are able to save 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 25 basis points from your interest rate, you could save yourself over $16,000 in interest over the life of your loan.
There is nothing worse than being stuck in a loan that isn’t right for you. So, don’t wait to see if you could save on the low rates or get some better loan characteristics.
Make an appointment to check your home loan by clicking on the “Book Now” button.