Is a home loan review on the bottom of your ‘to do’ list because it just seems like too much of a hassle or because you hate talking about money? Well, you’re not alone because apparently 42% of Aussies say they’d rather avoid the topic of money. I get it as I love talking about money, but many of my friends and family hate it! BUT talking about money and having your home loan reviewed could not only save you a lot of money it could also offer you many other great benefits.
Recent surveys suggest that almost half of Australian mortgage holders have never refinanced their home loans, and one in three don’t even know their home loan rate. It’s time to move your home loan review to the top of the ‘to do’ list especially if you have had the same home loan for 3 or more years as the cash rate set by the Reserve Bank of Australia is at an all-time historical low.
Better Interest Rate
Interest rates are changing on a monthly basis with lenders, so there are potential savings to be made. This is an example of the difference a few basis points could make if you were to able to get your interest rate down from say 3.9% to 3.1%. On a $400,000 loan you could be looking at saving $179 per month, $2,148 per year or more importantly $64,440 over a loan term of 30 years.
Better Products, Features or Incentives
Changing your loan to a different lender isn’t just about getting a better interest rate necessarily. The product itself may no longer be suitable because it doesn’t offer you new features like a line of credit or offset account, features you may not have required or considered when you first took out the loan.
Many lenders also offer incentives for you to switch loans such as a cash deposit or rewards points, so when you pair this with your potential interest rate saving it’s well worth reviewing.
A brand-new kitchen, funky updated bathroom, or even an extension to make room for that ever-expanding family. All these things can make such a difference to the way your home looks and feels. With the recent property increases, upgrading to a bigger or newer home is no longer an option for many people, but renovating and updating your existing home could be.
Another reason to access equity is if you’re considering buying an investment property but haven’t yet saved enough cash to put towards the purchase. Accessing equity in your current home could assist you with this purchase.
Ready to put that home loan review to the top of your ‘to do’ list? Contact Nikki Berzin at Cherry Lending + Finance to start your home loan review and see what options are available to you.
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product. Subject to lenders terms and conditions, fees and charges and eligibility apply.