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If you can nod your head to any of these scenarios, it’s time to review your home loan

We all know that it’s a good idea to review home loans regularly. But like reviewing insurance policies, it seems to be something we put off because we ‘don’t have time’ or our loan seems to be ticking along ok.

The reality is though, just because everything seems ok, it doesn’t mean it is. In fact, if you are comfortably meeting your loan repayments, there’s a good chance you’re paying more than you need to – simply because you’ve never felt an urgency to look more closely into it.

We completely understand that it may seem like an unusual time to review your loans. However, if your employment is secure – and you expect that’s not going to change – it’s actually quite a good time to review things.

If any of the following applies to you, it’s time we had a chat….

 

1. You don’t like paying a loyalty tax

You can read more about this here, but essentially it refers to the idea that you’re paying a loyalty tax to your existing lender. If your loan is a few years old, there’s a good you’re not being offered the best rate your lender has to offer, simply because they already have your business and reserve their special rates to new-to-lender borrowers.

 

2. Your needs have outgrown your loan

We come across situations like this all the time. Perhaps when you originally established your loan, you went for a basic loan because it suited you at the time. You didn’t want a package (because the annual fee would have exceeded your potential interest savings with an offset) and you were happy with a variable rate loan. However, now that your household income has increased and you have a bit of surplus income each month, an offset account would be beneficial. You’ve also been thinking about fixing in a portion of your loan – so potentially a package loan may be more suitable for you now.

Certain types of loans suit particular needs. Which means that as your needs and objectives change, the type of loan that suits you best will also change. And if you stay in a loan that no longer suits your objectives, it’s likely costing you money and potentially stopping you from achieving your other plans.

This leads us into the next reason to review your home loans…

 

3. Your plans have changed

When you bought your home, you had planned for it to be your ‘forever’ home. However, after being cooped up over Summer and now spending more time at home as a family, you’ve realised that 3 beddy, 1 bath property you’re living in won’t cut it for much longer. Even if you think you’ve got a few more years where you are, it’s a good idea to talk about your upgrading plans well before you plan to upgrade. Because often there are things you can do now – tweaks you can make to your loan and loan repayments – that can make the upgrading process MUCH less complicated when you actually want to make a move.

 

4. You’ve got personal debt you want to consolidate

With interest rates as low as they are, now is the perfect time to consolidate any personal debt you may have hanging over your head. Don’t keep putting off the conversation. Find out whether you can roll that credit card debt into your home loan. Not only may it help you to pay off your debt faster, but there’s a good chance it will help to reduce the strain on your monthly cashflow too.

 

5. You want to take advantage of the attractive fixed rates available

Depending on what type of loan you have (and with which lender), you may be able to easily split off some (or all) of your loan to a fixed rate. However, if you are looking to do this and it’s been some time since you comprehensively reviewed your loans, we suggest you review things BEFORE locking in with your current lender for another 1, 2 or 3 years. Otherwise, you may just find yourself locked into an arrangement for the next few years, which turns out to prove financially costly.

 

6. You want to save money (or at the very least spend less on your mortgage)

Saving money is often the driving factor to conducting a home loan review. After all, why should you go to the effort of reviewing your loans if you’re not hoping to get something out of it?

We completely agree!

The thing is – there’s absolutely no reason for you to pay more than you need to, because you don’t even have to do the investigative work yourself.

Given the current climate, it has become more important to ensure you’re making the most of what you have.

That you’re not wasting money (on higher repayments) – especially when you don’t need to.

And that you’re improving your financial strength, so you’ll be ok for the rainy day.

We can help you with all of that.

 

Find more about our Home Loan Review service here.

Otherwise, provide your contact details here and we’ll be in touch.

 

 

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