Purchasing your home is likely to be one of the biggest investments you will make in your life. But did you know that you could be paying even more than you need to? To make sure that you’re getting the most out of your current loan, we have put together 4 common mistakes that could be costing you more money on your home loan…
1. Not reviewing your loan regularly
Ideally, you should review your loan annually to compare your current loan with alternative products available on the market. This will help you gauge if your loan is still competitive.
A home loan that suited you when you first bought your home may not suit you now. If your personal circumstances have changed, such as a new job, a new addition to the family or new debt, your current loan may no longer be the most appropriate product for you.
2. Not paying extra repayments when you can
Has your income increased? Did you get a big tax refund or win the lotto? Your home loan is one of the biggest financial commitments you are likely to make in your lifetime. Naturally, the longer you take to repay the loan, the more interest you pay. If you have additional cashflow or savings, one of the most cost effective uses for that money is to make additional payments to your home loan.
Consideration should be given to other high interest debt first and whether or not fees may apply to additional repayments on the loan. These are all issues your mortgage broker can assist you with.
3. Sticking with high interest rates
You’ve probably heard that interest rates are at record-lows right now, so it’s a good idea for you to review your loan and see if your current rates are still competitive. If you’re still paying 7%+ on your home loan, then you are probably paying too much interest.
4. Not getting advice from a mortgage broker
You could be wasting valuable time sorting through hundreds of lenders and loan products to find the best deal, but is that the best use of your time? Seeking the assistance of a mortgage broker will undoubtedly not only save you money, but will save you precious time so you can get back to the things you’re good at.
As a rule, make sure that you review your loan regularly and use a mortgage broker to help ensure that you have the most suitable loan for your personal circumstances. If this sounds like you, come and speak to us today.