Is Your Home Loan Looking a Little…Unhealthy?

Whether you’ve had your mortgage for 20 years, or 20 months, it always pays to know whether your home loan is in tip top shape. This past year has seen massive changes in the real estate market in Australia. Sunshine Coast homeowners are not only buying and selling property at record prices, savvy homeowners are also accessing the best deals of their life on their mortgage. Do you know what a healthy home loan looks like?

Please read on to learn more with this quick health check guide we have written for you.

What does a healthy home loan look like?

With the cash rate and interest rates in Australia still at historic lows, a healthy loan will have the best rate you can get balanced with the right features for your personal circumstances. Every homeowner has different lifestyles, finances and goals in life. One mortgage does not suit everyone, and mortgages don’t always “grow” with you as your circumstances change. 

Unfortunately, we see a lot of homeowners with a set and forget mindset. This strategy is losing money from their pockets. The good news is a health check can be quick and easy and can save you money now and into the future.

Do you have a good home loan interest rate?

Interest rates have never been better. If you haven’t reviewed yours recently, your home loan is not working hard enough for you! Lenders will notify you if your personal interest rate is going up or down with a change in your repayment amount, but they won’t tell you if it’s the best they have on offer. They certainly won’t let you know if a competitor has a better rate, either.

You can easily improve the health of your home loan with a review of your interest rate. A good mortgage broker can do the hard work for you and advise if your rate is healthy. They can also help you through the process of getting a better rate to ensure you are getting the best deal available.

Do you have the right home loan features for you?

Here’s a quick quiz:

  1. Does your mortgage have an offset account? 
  2. Do you have a redraw facility? 
  3. Are you allowed to make additional repayments without additional fees? 
  4. If you have any of the above home loan features, do you use them?

If you’ve had your mortgage for years, is it still serving you for your current lifestyle? Maybe you went for a basic home loan package five years ago when you were just starting out but now you’ve built up some cash savings that could work for you in an offset account.

Or, perhaps you are in a position now to make some additional repayments to pay your loan down faster but you’re being charged fees for it. There are home loan products available that let you do that for free.

On the other hand, you might be paying for features as part of a package that you simply don’t need. Mortgage brokers work in your best interest to ensure your home loan works for you. As your lifestyle changes, and as the market changes, it’s a good idea to check in with an experienced mortgage broker and make sure your loan is as healthy as it could be. 

An experienced broker will help you assess your current loan, your personal situation as well as your goals and compare home loan features on offer in the market to match you with a better product if needed.

Are you actively managing your home loan?

How often do you check your home loan details, repayment amount, interest rate and statements? How often do you check how your interest rate compares to other lenders and home loans? If you answered not often, or never, you are not alone! Homeowners are busy doing life, which is how it should be. But it also means your home loan might be a bit neglected and not in the best shape. 

We love helping our clients save money. That means we keep you up to date with important changes that might get you a better deal. We don’t just stop at helping you refinance, renegotiate or settle a home loan in the first place. We also help you negotiate better deals throughout the life of your loan. Whether it is liaising with your current lender or helping you move to a new lender with a better home loan offer, we can manage your home loan for you.

Is your home loan in need of a health check? Talk to us today and access the best home loan advice on the Sunshine Coast. 

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