September 08, 2014
Low rates encourage borrowers to review their mortgage
With spring just around the corner and interest rates hovering around historical lows, now may be a good time for borrowers to give their mortgage a much needed spring clean and make sure their current home loan is still the most suitable product for their needs.
Local Mortgage Choice franchise owner Melanie O’Connell said giving the mortgage a spring clean each year can often end in a pleasing result.
“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,” she said.
“And with interest rates sitting at historical lows and Australia’s lenders actively competing for business through sharp pricing, significant discounts and other incentives, borrowers may find a simple spring clean of their mortgage can save them thousands of dollars.”
According to Mrs O’Connell, borrowers who give their home loan a spring clean may realise that they are in the perfect position to refinance their mortgage.
“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.”
Mrs O’Connell offers the following tips as a starting point for those borrowers wishing to give their mortgage a spring clean:
- Look at your past year’s budget: Investigate what aspects of your spending you can move around so you can add extra dollars to your mortgage. Every little bit goes a long way to reducing your debt, saving on interest payments as well as time off the loan term.
- 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.
- 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.
- 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.
- Get a free home loan health check: A free home loan health check from a reputable mortgage broker, like Mrs O’Connell, 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 why don’t you check you’re still doing the best thing by your mortgage.
If you want to learn more about your finance options, call 0435 048 118 or visit www.mortgagechoice.com.au/melanie.oconnell.
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.