When was your last Home Loan Health Check?

Setting aside some time once a year to answer some simple questions about your current home loan and what current offers exist could save you thousands of dollars.  Whether you want to reduce your monthly repayments or pay off your home loan sooner an annual home loan health check will give you peace of mind that your existing home loan is getting you where you want to be.

Refinancing your home loan is often a very simple process and the thousands of dollars of potential savings are well worth any effort that is required. We often spend hours researching the best home appliance or car, why not do the same with one of life’s biggest investments?

HOME LOAN HEALTH CHECK LIST

  • Am I paying an unreasonably high interest rate?
  • Am I paying outrageous fees?
  • Am I happy with the service I am receiving?
  • Is my current lender offering new customers a better deal?
  • Have my financial circumstances changed?
  • What are my financial goals for the future and will my current loan get me there?

The easiest way to quickly check if your home loan interest rate is working for you is to do some research on what the current interest rate on offer is and compare it with your existing rate.  Using a mortgage calculator to compare interest rates, repayments and the term of the loan will give you a general idea of where you stand.  There are other considerations that do need to be made before switching and this is where seeking out the expertise of a mortgage broker will save you time and money.  At no cost to you they can quickly and easily compare your loan with the best on offer and will let you know if refinancing suits your needs and budget as well as informing you on how any fees or charges that may apply will impact your goals.

Sometimes the best action to take is none BUT only after you have done your due diligence and know you already have the best deal for you.

While you are taking the bank by the proverbial horns it is always worthwhile taking a look at other areas that impact on your home loan health.

By doing a budget check and assessing where you can save daily, weekly and annually you could potentially put yourself in an even stronger position.  Paying off personal debt sooner is a potential win for your mortgage so don’t forget to review loans and credit cards.

Often the driving reason to seek refinance is to get a better interest rate or reduce your monthly repayments but there are other reasons to consider refinancing.

Refinancing can open doors to build additional wealth through investment avenues by accessing the equity in your home.  Streamlining your debt to reduce the overall interest you pay through debt consolidation also has the potential to help you reach your financial goals.

By contacting a broker and having a chat about your own personal circumstances and your financial goals you can explore all the options available to you with no obligation to refinance.

What the mortgage broker will need from you.

At Network HQ we want to know how we can help you get from where you are now to where you want to be.  Our first conversation will focus on the primary reason why you are seeking refinance as this will be our focal point when searching for a product that is going to work for you.  We want to make sure that the issue giving you the greatest concern is taken care of.  At the end of the day we strive to get you in the best financial position your personal financial circumstances allow for.  Next, we will need to know who your lender is, what product you have, your current interest rate, variable or fixed, interest only or principle & interest and the amount owing on your loan.

Should you decide to refinance we will need some important paperwork to support your application. Recent pay slips, statements for your existing home loan or any other loans, most recent council rates notice and the building insurance policy for the home being refinanced.

Once your loan is approved, your new lender will pay out your current loan on your behalf and you can commence repayments on the new loan.

While the process of refinancing can often appear daunting in reality it is far easier than it appears.  Taking the time today to make sure your home loan is getting you where you want to be is an important step in the right direction to reaching your financial goals.

 

***The information provided in this article is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. Before making any decision, it is important for you to consider these matters and to seek appropriate professional advice.***