Your home loan health check

February 28, 2023 by Con Zagas

A lot of us take the time to visit our GP at least once per year to check in on our health. Sure, we might be feeling fine but finding something early on can help prepare you for your future or at least give you some preventative measures you can take.

When was the last time you checked your mortgage? You might be making repayments or simply having the mortgage in your mind. Could there be something in the background you need to be aware of? Paying a higher interest rate than you need to? Are there just better-suited products available?

Here are the benefits of reviewing your mortgage regularly.

1. Take advantage of lower interest rates.
   Just because you received a low rate at the time of purchase doesn’t mean it still is the lowest today. Most lenders like to keep quiet when it comes to reducing your rate. Changes in market and products mean different lenders compete with each other and may offer a lower rate than you are on now. If you’ve had your loan for quite some time, you may be able to take advantage of a lower Loan to value ratio tier, meaning access to a lower rate.
   
   
2. Access features you might not currently have.
   You might have taken out a basic variable home loan product at the time of purchase; however, since then, you might have accumulated savings and want to take advantage of an offset account to save on interest. Refinancing means you can compare products with features that suit your needs. 
   
   
3. Consolidate debt
   You might think, “I shouldn’t have taken that personal loan 3 years ago; that extra $400 per month could be useful elsewhere.” If you have access to equity in your property, you might be able to take advantage of the equity and consolidate your debts. Consolidating your debts means you use your home loan to pay out any personal loans or credit cards. This can help minimise overall debt and lower monthly repayments by putting them into one payment. Remember that this doesn't mean the debt disappears, it just gets added to your home loan. This means your home loan will increase, and you may need to pay more interest in the long term.
   
   
4. Ensure you stay up to date on your goals.
   Reviewing your mortgage regularly means you’ll understand your borrowing capacity and overall situation. If you plan to purchase an investment property or upgrade your home, you’ll know exactly where you stand and make an informed decision.

Have you refinanced recently? What would you say are the benefits of reviewing your mortgage?

Get in touch today to book your free home loan health check. You can book in through a discovery call or let us know by email.

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