Each year many of us review our insurances and regular household expenses with a hope saving a few dollars, however many of us fail to review our greatest expense -OUR HOME LOAN.
An annual review of your home loan should take about 10-15 minutes with a mortgage broker, who has access to many lenders and their various rates, features and benefits.
January is an excellent month to conduct the review, just after what is generally our highest spending month. Your home loan may have been the most suitable when you first took it out however circumstances change such as :
- Your property value increases.
- Your loan will have decreased which could result in a lower loan/value ratio placing the loan into a better interest rate bracket.
- Your fixed loan may have recently expired or is about to expire.
- Opportunities exist to consolidate higher rate loans such as personal loans and credit cards.
- The cheapest loan 5 years ago may now be one of the more expensive.
- Purchasing a car, investment property or renovating are also great time to review your home loan.
We recently refinanced a clients home loan from one of the major banks to another of the majors. By finding a great rate and a home loan with features more suitable, these clients will now pay off their home loan 8 years sooner by paying the same monthly repayment. Eight years of no mortgage repayments may assist the clients into other wealth building options such as further investment or additional superannuation payments for retirement.
Changing from one lender to another is no longer the expensive exercise it once was since the abolishion of exit fees by lenders. Some lenders are even currently offering cashback promotions to assist with refinancing costs.
So be sure to review your home loan this week. It costs nothing and worst case scenario is that you gain comfort knowing your current loan is well priced and services your needs.
Should you have any questions or comments on the above please call me on 0428 434084 or email email@example.com