It’s always a good idea to give your loan a health check so you don’t miss out on potential savings!
Look for a better deal.
Do you know what your current home rate is? Do you know how it relates to other available rates? If no, you’re not alone. We see clients every day who aren’t sure what their current rate is. Its a common story – you successfully settle your home loan, the repayments are manageable and it all becomes a little “set and forget”.
While not the worst thing to happen to you financially, it’s not the ideal situation for you either. By refinancing to a lower rate, you could be saving yourself thousands of dollars a year.
In the span of a few months, your borrowing situation could change and the loan that once fit your needs may no longer do so. Likewise the lending landscape changes and stiff competition is ever present between lenders. If you’ve waited any longer than 12 months to get a health check on your loan, you may be paying far too much.
If you are unsure if you should refinance, we have listed a few reasons why people refinance below.
Life always changes
If you have had a home loan for a few years now, it’s safe to assume your life has changed in that time. Perhaps you’ve started a new job? Received a promotion? Got married? Had a child? Whatever has changed, its best to ensure your home loan needs to match those needs. Likewise if you’re near of a fixed rate term or interest only period so now is a great time to have a look into your possible options.
Whatever the reason, we can help you ensure your home loan is in line with your needs and goals. Get in touch with us to get started today.
Looking to pay off your loan faster?
Paying off your loan early essentially saves you paying money in interest. You can smash those repayments by paying above the minimum payment set out in the contract and pay off your loan early.
Extra payments isn’t the only way to make a dent though, it is possible to structure your loan to get more out of it with an offset account. By paying your salary into an offset account, you reduce the interest you pay on your mortgage each month.
Alternatively, you could also switch to a simpler home loan with less features if you no longer require your current features.
What is equity and why is it a good thing?
Equity put simply is the difference between what your home is worth and what you owe on it. So, if you own a $1,500,000 property and owe $1,000,000, you have $500,000 of equity in your home. However, the amount of equity you can borrow is generally limited to a 90% loan to value ratio (LVR).
Equity can be used towards purchasing an investment property, upgrading your current home, or home improvements.
Contact Us
Senior Mortgage Broker, Shane Howley, will help you search, choose and settle your new home or investment loan. Please call or email to discuss your requirements.
Phone
1300 595 910
