Let’s face it, no one wants to shell out more for their mortgage than they need to, that’s why it’s well worth keeping a watchful eye on your home loan.
It’s easy to get into the routine of paying your fortnightly or monthly repayments. But should your circumstances change, say, for example you get married or have a child, you may be paying for features you no longer need or that there’s simply a cheaper loan available.
If any of the following happens, it may offer the ideal chance to take a home loan health check to see if your loan is still performing at its best:
Rates rise and fall: Rates go up and down over time so it’s worth keeping an eye on how your repayments are impacted. You might want to consider fixing all or part of your mortgage if rates look like they’re on the rise. A fixed loan guarantees a set interest rate for an agreed term which will protect against rate rises. Alternatively, if rates look set to fall a variable rate might best suit your situation.
Updated products: New loan products hit the market all the time so it’s a good idea to keep an eye out to see if another loan may better suit your situation.
Changes afoot: Your own personal situation may alter over time so it’s worth checking that your mortgage still meets your needs. You may change from a salaried role to self-employment or perhaps you’ve taken a role with a lower salary. You may even be thinking about securing your future financial security through a property investment. Whatever the change to your lifestyle, there’s likely to be a mortgage to fit.
Before you visit your broker for a home loan check-up consider the following points about your current mortgage:
• Am I managing my repayments? Do I want to pay more or less?
• Am I paying unnecessary fees?
• Do I have other debts I’d like to combine with my home loan? Would this save me money?
• What features might I like to incorporate into my loan?
• Do I want to draw the equity out of my property and purchase an investment?
Your mortgage doesn’t need to be static. The good news for Australian borrowers is that lenders are evolving all the time, which means there’s not only new products coming on to the market, there’s also a fair amount of competition between lenders for your business. If you feel that your loan might not meet your needs right now and in the future, please contact me @ IPS Home Loans on (02) 4227 5511.
| 
