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Is it time for a home loan health check?

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unnamedWe’ve just been through the busiest time of year in the property game. If you’re interested in purchasing property, then spring is when you’re usually flat out researching the market, viewing properties and attending auctions. But now that summer is here and the busy period is slowing, it’s a good time to review your financial position and the financial products you’re already using. Are they still the best options available for you?

A regular home loan health check is an important part of the ongoing service we provide to you and it’s particularly important if you’ve had your loan/s for a while. In this article we look at the reasons why you might want to review your home loan right now and how you could benefit from talking to us.

What is a home loan health check?
The term of your home loan may be as much as 30 years, but that doesn’t mean you have to keep it for that long. A home loan health check is a service that we like to perform for you on a regular basis. It entails a short discussion about how you use your loan and a basic review of your financial circumstances. It gives you the opportunity to ensure that your home loan is still the best product available for you – because let’s face it, things change.

These days its common practice to review your home loan regularly. New financial products come onto the market all the time and it’s a good idea to compare the loan you have with what’s available now. Perhaps you now need a different type of home loan, or you could save money on repayments. Maybe your lender has raised your interest rate and you’d like to see if you could do better. The idea behind a home loan health check is to make sure you have the right product for you and to give you peace of mind that you’re not paying too much or missing out on any benefits.

These are the questions we consider during your home loan health check:

  • What are your financial goals and objectives for the year ahead?
  • Have your financial circumstances changed?
  • Are you paying a higher interest rate than you have to?
  • Are your fees too high, is there a way to cut them down?
  • Does your home loan give you the features you need?
  • Are you paying for features you don’t use?
  • Are you interested in accessing your equity?

Why should I get a home loan health check?
Even though the Reserve Bank of Australia (RBA) has kept the official cash rate on hold for most of the year, interest rates have been on the rise due to changes in banking regulations. Things have changed for both home owners and property investors in terms of how much your home loan costs in interest rates and this alone gives you a very good reason to check that you’re still getting the best rate available for you considering your personal financial circumstances and goals.

The fact is, whilst most lenders have raised their interest rates over the last two months, some lenders have raised their rates more than others. If you’ve had your loan for a while and your interest rate went up recently, we can compare your current home loan with other products from a wide variety of lenders to see if you could benefit from refinancing your home loan with a different lender.

Refinancing to a home loan with a lower interest rate could potentially save you thousands of dollars over the life of your loan. And if you’re considering refinancing to a different loan, why not take a look at your other finances at the same time to see if refinancing could help you there as well? For example, if you have credit card debts, you could take out a little equity when you refinance to pay them off and save yourself a lot of money on expensive credit card interest.

What are your property purchasing plans for 2016?
If you have any plans to purchase property in 2016, getting a home loan health check now could help you determine your financial position and help you achieve your goals. This is true if you’re planning on moving to a larger home, or even if you’re just thinking of renovating your existing home.

If you are a property investor or are planning to invest for the first time in 2016, we highly recommend that you get in touch. Recent changes to banking regulations regarding investment lending/borrowing have really changed the game and you may benefit from discussing your options.

You may think that you are now unable to move forward with your property investment ambitions, or perhaps you are uncomfortable with your current financial structure. Don’t worry, we’re here to help! We’ll do our best to help you get past any impediments and help you look at ways to continue to strive for your property investment goals.

Why not call us now to get your home loan health check underway? It will be of great assistance to your property plans in 2016, cost you nothing and may even save you money! We’re here to help you make sure you’ve got the right financial products for your needs, personal financial circumstances and goals, so please give us a call today.

Element Finance, Mortgage Broker for Fremantle, Joondalup & Perth
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