Spring cleaning your home loan

August 31, 2014
Rikki Stanley

Mortgage Choice's 5 tips to de-clutter your finances

 Spring is not just the time of year for spring cleaning your home. With interest rates hovering around historical lows, spring may be a great time for borrowers to give their mortgage a much needed spring clean.


When did you last check that your current home loan is still the most suitable product for your needs?


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. Often pleasing results can be found by giving your mortgage a spring clean each year.


How can a Home loan spring clean possibly save you thousands:

Interest rates are still at historical lows, so if you have been on a higher rate, switching to a lower rate could save you thousands over the life of your loan. 


Lenders in Australia are actively competing for business, which ultimately means savings for you through:

      • Sharp product pricing
      • Significant discounts
      • Incentives

Borrowers who give their home loan a spring clean may realise also that they are in the perfect position to refinance their mortgage.


What is refinancing:

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 mortgage repayments, consolidate their debt and even access equity in their home.


Mortgage Choice's 5 Tips for where to start spring cleaning:

Daniel Meade from Mortgage Choice offers the following tips as a starting point for those borrowers wishing to give their mortgage a spring clean:


  1. Look at your past year’s budget: Add extra dollars to your mortgage by investigating which aspects of your spending you can save on. Every little bit goes a long way to reducing your debt. It also lets you save on interest payments and helps you pay off your loan sooner.


  1. Get to know your mortgage: Recent 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.


  1. 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.


  1. 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.


  1. Get a free home loan health check: A free home loan health check from a reputable mortgage broker, Daniel Meade, (who is your mobile Mortgage broker in North Brisbane, Sandgate, Caboolture, North lakes and surrounds),  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 it’s worth checking that you’re still doing the best thing in terms of your mortgage.


Ready to get your cleaning gear on? 

Daniel is ready to help you with your home loan spring clean, so if you want to learn more about your finance options, please call 07 3833 9666 , email Daniel at daniel.meade@mortgagechoice.com.au today.


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Important information

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.


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