As one of the biggest commitments you are bound to make in your life, it is essential that you review your home loan regularly to make sure it remains appropriate for your changing circumstances and the ever changing economic climate. Here are a couple of things to consider when deciding how often to review your home loan.
Ideally, you should review your home loan every year. You may not choose to change your home loan every year, but you should make time to consider the current market, available products and the prevailing interest rates. That way, through discussions with your mortgage broker, you’ll be able to determine when the right time is to get a better deal on your loan.
A change in your circumstances
A significant change in your circumstances could mean that a loan that was suitable for you a year ago is no longer the most suitable loan for you now. You may have changed jobs and your income has changed. Perhaps you have purchased a new car and your overall debt position has increased. Your financial goals may have changed and you may wish to pay your home loan off sooner by making additional repayment. All these changes might mean that a more suitable loan product or debt structure is available for you, so it is a great idea to review your home loan to ensure it still services your needs.
Interest rates change dramatically
If you haven’t reviewed your loan in the last 12 months, now is a good time to do so. Interest rates have dropped greatly over this period and record low rates means that you could be paying a much higher interest rate than what is currently available in the market. A reduction in your interest rate could translate to several hundreds of dollars in savings. Speak to us about your options today.
Reviewing your home loan couldn’t be easier with the assistance of a mortgage broker, as we do all the hard work and running around for you to present you with the most suitable options available in the current market. We compare these options with your current loan to see if you could be saving money or find a loan that offers more flexibility depending on your circumstances and your financial goals.
If you would like to review your current home loan, get in touch with us today.