Read your home loan statement lately? Do you know your loan’s interest rate? If your home loan paperwork is gathering dust, make it a New Year’s resolution to get reacquainted in 2015.
A simple review of your home loan could uncover serious savings.
Reviewing your loan can be as easy as asking yourself these 5 simple questions:
What is my home loan interest rate? How does it compare with what’s being advertised today?
There is aggressive competition among lenders to secure new customers. Make sure you know what rate you’re currently on, and how it compares to current rates being advertised. However, keep in mind that the lowest rate isn’t necessarily what’s best for your situation.
What are my annual fees and charges?
Establishment fees, package fees, annual fees, exit fees – over the life of a loan they add up! If your situation has changed since you first took out your mortgage, speak to us to see whether you may be able to avoid paying some of the fees.
Is my loan type working for me, and for my financial situation?
If you have a fixed rate loan, your repayments are predictable, but you may hate it when you watch rates dropping. Review your fixed rate loan when you’re nearing the end of the loan term. Got a variable rate? They fluctuate when lenders move their home loan rates – which are often independent of the cash rate cycle.
What are my loan features? Am I making the most of them?
Your loan may come with features you don’t use. Features such as the ability to make extra repayments without penalty, or a redraw facility, giving you access to your extra repayments. Unsure about the features of your loan, or how they work? We can step you through them.
All too hard? Who can assist me?
Give us a call. We can review your personal situation and advice you on the right course of action.