How to review your mortgage
By Advantage Property | 15th Dec 19
Just like health insurance, home loans often get put in the “set and forget” box. With interest rates at record lows, you might want to start investigating to see if you can improve the terms of your mortgage.
So how often should I review my mortgage? Often we get prompted by banks when interest rates are going to rise, it could be the anniversary of your loan or you may have had a change in income recently. These triggers usually prompt people to consider other options but if you’re looking to potentially save some money each month you might want to look into what deals are currently being promoted.
Speak to your bank: If you’re loyal to your bank we suggest you approach them to speak to one of their advisors about your current home loan. It’s always a great place to start and with many banks now providing mobile services, it’s convenient to arrange an appointment at work or at home.
Speak to a mortgage broker: Don’t forget to shop around for a better deal! A great mortgage broker can save you thousands especially if you are thinking of refinancing or are just reviewing your loan. They specialise in home loans and are able to search for the best deal across many banks to offer you a variety of options.
The old mentality that you are stuck with a loan for life is changing, especially if you have structured your mortgage for flexibility. Some people prefer the security of a fixed rate, but you might want to consider the benefits of a variable rate. We suggest when doing your research to look into the monthly savings as opposed to what the savings could potentially be over the life of the loan. After all, you are not able to predict what the circumstances may be in 25 years.
Is it easy to switch loans? The paperwork can be time consuming but if you can save significant dollars on your repayments it’s worth the extra effort. Speak to your mortgage broker or bank as changing loans can cost around $800.
Information in this article is general in nature. Readers should consult their mortgage broker or bank for professional advice in relation to your individual circumstances.