Locals encouraged to review their mortgage

I think it’s fair to assume that with Valentine’s Day just gone, many locals will have taken the time to review their relationships and make sure they are with the right person. 

But while many will actively review their relationships on a regular basis and make sure they are not settling for second best, they don’t take the same proactive approach towards their finances, and in particular their mortgages. 

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.

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.

Locals 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.

Before you attempt to refinance your mortgage, it is important to do your due diligence and research what options are available to you.

Many of Australia’s lenders are offering significant discounts at the moment, so it is important that you don’t just take a lender’s standard variable rate on face value as it is possible to secure a much lower rate.

A mortgage broker, like myself, can step you through the entire 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, we will do all of the paper work on your behalf, often at no cost to you.  

For more information contact Richard Windeyer on 1800 01LOAN

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