Have you fallen into the 'set and forget' trap when it comes to your mortgage?
When was the last time you thought about your home loan? Have you just let it ‘sit‘ there for a while, not paying it much attention? Does your interest rate start with a 4 or more?
If so, you could be paying far too much for your loan, and not taking advantage of some super-low interest rates that are available at present - starting with a 3!
There are a few easy ways you can give your finances a ‘health check’ to ensure they are still meeting your needs:
1. Do you know your home loan’s interest rate?
You could be paying far too much! With interest rates at 50 year lows, now is the perfect time to get a review of your loan. We can provide you with a free home loan health check, comparing your loan with hundreds of others on the market to see if there’s a better deal around.
2. Have your financial circumstances changed? Have you recently changed jobs, or received a pay rise or bonus?
Check whether your home loan has an offset account or redraw facility, as adding a lump sum contribution to your loan could help you to significantly reduce the interest owed and the overall loan term.
3. Have your personal circumstances changed? Have you recently moved from a single income to a double income?
You could choose to use your second income to repay your home loan sooner, or to build up equity, or to buy an investment property.
4. Are you looking to extend your family, or has a new family member arrived?
We all know that ‘baby’ years are a very expensive time in our lives! Are you struggling with young children at present? If you do have a young family, or are planning a baby, switching to an interest-only loan could lower your loan repayments for a set period of time, giving you a little breathing space. While these loans offer many of the same features as principal and interest loans, with the benefit of lower monthly repayments, it is important to carefully consider the cost versus benefit of switching.
5. Do you have plans to upsize or downsize?
There are a number of options available for those looking to move on. A home loan health check will allow you to determine whether there is a better loan option available to meet your changing needs. Come and talk to us about your current financial needs, and we will do our very best to help you – whatever stage of life you’re at.
To book a free home loan health check call either Fiona on 0421 360 205 or Steve on 0427 390 929.