Don’t settle for second best this Valentine’s Day
Australians are encouraged to review their mortgage
With Valentine’s Day just around the corner, many Australians will take the time to review their relationships and make sure they are with the right person.
“But while many of us will actively review our relationships on a regular basis and make sure we are not settling for second best, we don’t take the same proactive approach towards our finances, in particular our mortgages,” local Mortgage Choice franchise owner Des Nation said.
According to Mortgage Choice’s recent Happy As Index, less than 50 per cent of those with a mortgage plan to review their home loan this year.
“Given that many of Australia’s lenders have recently cut their rates to 60 year lows, now really is the perfect time for those with a mortgage to review their situation and make sure they are still in the right product for their needs,” Mr Nation said.
“After the Reserve Bank announced it would cut the official cash rate by 25 basis points last week, many of Australia’s largest lenders were quick to follow suit, trimming 0.25 per cent from their respective standard variable rates. But while many were happy to pass on the full rate cut, some lenders went even further, trimming more than 25 basis points from their standard variable rates. This act shows just how hungry Australia’s lenders are for business.
“With that in mind, it makes sense for borrowers, especially those who have been in the same mortgage for the past few years, to review their home loan.”
Mr Nation said Australians who review their mortgage may not only find that there is a better product for their needs, but they may find they are able to save themselves thousands of dollars in mortgage repayments over the life of their 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,” he said.
Before you attempt to refinance your mortgage, Mr Nation said it is important for mortgage holders to do their due diligence and research what options are available to them.
“Many of Australia’s lenders are offering significant discounts at the moment, so it is important for borrowers not to take a lender’s standard variable rate on face value as it is possible to secure a much lower rate,” he said.
“A mortgage broker, like myself, can step you through the process and scan through hundreds of home loan products to help you source a sharply priced mortgage that is right for your needs. In addition, they will do all of the paper work on your behalf, often at no cost to you. “
If you would like learn more about your home loan or financial advice options, call (02) 9833 8177 or visit www.mortgagechoice.com.au/Des.Nation
For further information, photos of the new logo, or to arrange an interview, please contact:
0412 709 700
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.
About Mortgage Choice
Mortgage Choice is an ASX listed company that seeks to help Australians with all of their financial needs.
Established in 1992, Mortgage Choice was originally established to help Australians improve their financial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional.
Since that time, the company has grown and developed into a fully fledged financial services provider.
Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset finance, deposit bonds, and risk and general insurance.
Further, the company offers Australians access to real, relevant and affordable financial advice through our qualified financial advisers.
Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.
Recent recognition: 2014 Australian Broking Awards Best Diversification Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.
Visit www.mortgagechoice.com.au or call customer service on 13 77 62.