When was the last time your home loan had a health check?

Do you shop around for the cheapest tickets and accommodation when going on holiday?  Do you check the catalogues for items on sale? 

A mortgage is the biggest debt most of us will ever have, and a home is the most expensive purchase we will ever make.

That’s why it is so important to avoid mistakes that may cost you a LOT of money.  So many people assume they have a great deal and let it sit there, forgotten unless prompted by the bank or a new purchase!

With the Reserve Bank leaving interest rates on hold again this week and the big Banks being under increasing pressure to be transparent and accountable, there are a number of smaller banks and lenders becoming increasingly competitive.  Not only with rates but also with customer service!   

People make smart choices every day. They make a budget to see what they can afford, then get home loans with great interest rates, low fees and predictable, fixed monthly payments.

When was the last time you actually read your home loan bank statement or reviewed your interest rate and its structure? You could potentially uncover ways to save money and time on your loan simply by asking the question of your lender. 

Hints and tips 

  • There are a number of owner-occupier loans out there for under 4%, what rate do you have?**
  • Can you make lump sum payments or exit early without penalty?
  • Are the repayments right for your current circumstances? Things change, work, kids, marriage…
  • Have you considered a fixed rate? Just because rates are low now, is a change coming?
  • Do you have an offset account? You could be saving interest!

Just like insurance, electricity, mobile phones, internet connections or even gym memberships, you should make the time to check out the competition and simply ask the question – Can you do a better deal for me?

The best way to keep your lender accountable is to review your loan structure and ask questions.  Give us a call if you would like to have a chat! 

*information is opinion only and not meant as financial advice.  Please see your individual lenders or brokers for advice that is tailored to your individual circumstances

** https://www.finder.com.au/the-average-home-loan-interest-rate.