| When you think of a health check, you typically picture going to the doctor. But what about the health of your finances?
It’s time to ask some important questions about the health of your home loan and assess your situation.
Have you checked your rate recently?
Do you know your home loan’s interest rate? You may be surprised to learn that more than eight in ten homeowners don’t, and maybe paying more than they need to. Suppose you have a $500,000, 30-year variable-rate home loan at 4.55%. A reduction of 0.5% could save you $1752 in one year#.
Can you change your home loan according to your circumstances?
If you have some flexibility in your monthly budget, consider a variable-rate mortgage that gives you greater payment flexibility and access to money-saving features such an offset account, which can help reduce your interest costs.
Have your financial needs changed?
Have your financial circumstances changed since you applied for your loan? If so, why not consider reviewing your banking needs? Banks will often offer home loans, credit cards and transaction accounts that work together to provide you with an overall banking solution to suit your circumstances.
Some lenders will also provide you with a dedicated Relationship Manager who can help you match the right products to your needs and guide you through the entire process, making it an easy and seamless transition. Be sure to check the options before choosing your new lender.
When was the last time you talked to your broker?
A general rule of thumb is: if you can reduce your interest rate by 0.5% or more and you’re planning on keeping your property for more than one year, it’s worth shopping around for a new loan.
You can calculate the refinance break-even point with the closing costs (such as exit fees) and the amount you expect to save |
