When it comes to investing in our homes, Australians know it’s a big decision. With numerous options for home loans from banks and non-bank lenders, it’s easy to feel overwhelmed when trying to find the most cost-effective way to reduce your mortgage repayments.
But here’s the thing: the loan products that were available in the past may now be outdated and more competitive options better suited to your situation may be available. Plus, your circumstances may have changed since you first signed the dotted line on your mortgage.
That’s where a regular mortgage review comes in. At Platinum Package Home Loans we can analyse your current mortgage and compare it to the latest options in the market.
Depending on your circumstances, an annual mortgage review can make sure that you have the most suitable option as your circumstances change. And it’s as simple as having a chat with your mortgage broker here at Platinum Package Home Loans each year to see if their is a more suitable option for you.
What are some of the advantages of a regular review?
1. Lower interest rates
By regularly reviewing your mortgage and exploring opportunities to switch to a lower rate, you can potentially reduce your overall interest costs. For example, if you have had the same home loan for a number of years, you could be paying a higher interest rate than new customers.
Even if you’re locked in it could be worth checking for more competitive rates and loan structure so you can weigh up the cost of staying or changing your loan, and have the confidence that you have a suitable option for your circumstances. We can assist you with comparing your options and knowing the full cost of staying or changing in the long-term.
2. Debt consolidation
Refinancing allows homeowners to borrow against their home at a significantly lower rate than other high-interest debts like personal loans, vehicle loans, and credit cards. By tapping into the equity in your property, you may be able to take advantage of lower mortgage rates to pay off your high-interest debts. This may increase your mortgage payment, so it is best to chat to our team to find out if this is an option that would suit your circumstances.
3. Improvement in your circumstances
When your circumstances improve, your equity grows or your credit rating gets better you may have more competitive options available then when you first secured your loan. As your financial position strengthens you may start to meet the criteria for a wider range of lenders, giving you a higher chance of finding a more competitive products. Our team can guide you through your loan options as more products become available.
4. Unexpected life changes
Where possible, it is recommended to plan ahead for the future by considering potential changes one to two years in advance so you are prepared for any changes that come your way. However, not everything goes to plan. Whether it’s expanding your family or adjusting to employment industry shifts, if you find your circumstances have suddenly changed, being proactive now may help to alleviate financial stress in the future.
5. Fixed and honeymoon rates do come to an end
Fixing your rate when you expect rates to rise is a common strategy that helps you have consistency over your repayments. But as the fixed-rate period ends, you could be automatically switched to a mortgage product with a higher rate. This is why taking proactive steps in advance to find a suitable option before the fixed rate expires is important.
We specialise in creating tailored loan options to suit your circumstances, and we are here to make sure that you continue to have access to competitive options as those circumstances change.
Book in today to discuss a Home Loan review or assessment.
Terms are subject to approved persons only. This information is true and correct as of 19/08/2023. All of the content above is general in nature and may not suit your personal needs, situation objective & goals.