The spring and summer selling season is starting to slow, home loan interest rates are at record lows – banks are now looking at a slow rise in rates, due to regulatory changes that will make our financial institutions amongst the strongest in the world, so there ever been a better time to perform a health check on your mortgage?
Competition for your home loan has never been fiercer, and you will most likely be pleasantly surprised as to what’s on offer.
Reviewing your current situation is smart planning
Can you get a better rate or loan that will suit your immediate goals? Are you preparing for a renovation or investment possibilities?
Does your current home loan suit you? Here’s a checklist to find out:
- Exit fees. Before you do anything, find out if your current loan has an exit fee. This is most likely called a ‘break fee’.
- What type of loan is it? There are three basic types – basic, standard and package. Basic loans feature a low interest rate, but are no-frills and have minimal features; standard loans have a higher interest rate but are far more flexible, and home loan packages, which offer a low interest rate and many features, but have yearly fees.
- What are your monthly fees? Are you paying a higher than average rate.
- Are your fees reasonable? You may be used to paying your fees, but that doesn’t mean they’re reasonable.
- Are you happy with the service your lender provides you? Do you find it easy to access your accounts? Have your personal dealings been satisfactory?
- Does your loan give you the features you need? There may be features that you would find beneficial.
- Features. Are you paying for features on your loan that you’re NOT using (or never will use)?
- Have your financial circumstances changed since taking out your loan? For example, you may have initially needed a basic loan but now, you’d like to pay your loan off more quickly.
Get expert advice home loan advice
A mortgage broker or independent financial advisor will be able to look at your current loan and compare it with what’s on the market today. Remember, with interest rates low and an increasing number of lenders, finding out your options can never hurt (and quite possibly make an enormous difference).