Don’t forget to give your home loan the attention it deserves, as you prepare to go into the New Year, you may be assessing areas for improvement in your personal health, relationships and career, but your mortgage is just as important.
With interest rates on hold and no RBA meeting this month, it’s a good idea to make sure you’re not starting off a new year paying more for your home loan than you should, this is an ideal time to review your fees, rates, charges and mortgage provider.
Taking time once a year to give your mortgage a health check-up can expose ways that you could be taking advantage of better rates, services and features. At the very least, you’ll feel safe in the knowledge that your finances are in good shape.
Get started by comparing your mortgage with other comparable home loans on the market. During your health check-up, think about whether your financial circumstances have changed, are you unhappy with your current lender’s service, or are you paying for any features you don’t need. Also, examine fees and interest rates closely to determine if they could be improved.
Make your home loan check-up an annual event
Along with conducting your annual health check-up, if you want to save on your repayments, consider the following savings tips.
- Compare your home loan rate to the latest rate cuts by the Reserve Bank. Has your lender passed this rate cut on to you? If not, it may be time for a change.
- Rather than lowering your payments when the rates fall, it’s best to keep paying more. This allows you to pay off your home loan faster, saving thousands in interest.
- Switch from monthly payments to fortnightly repayments. Because there are 26 fortnight’s in a calendar year as opposed to 12 months, you’ll be adding what amounts to a monthly repayment to your mortgage schedule.
By following these savings tips and taking the time to schedule your annual home loan health check-up, you can feel secure in the knowledge that you are benefiting from the best possible rates, fees, and loan structures available. This sets you up for a financially solid new year.
Better still, have an expert mortgage broker carry out a full home loan comparison for you, a professional mortgage broker will assess your circumstances, listen to your wants, needs and desires and take into consideration your future plans and come up with a list of mortgage products, lenders and features that match your requirements.
Need help calculating your finances? Our online calculator can assist you in determining your home loan repayments based on the amount you are planning to borrow.