Within the home loan industry there are numerous offers to provide a review of your current loans, whether they call it a “Home Loan Health Check”, “Loan Review”, or similar.
What does this mean?
Ultimately the basis behind a review is to assess the current rate, terms and fees of your existing loan to assess if you can obtain a more effective loan structure for your needs. We all have different priorities but a Home Loan Health Check could assist with:
– Reducing your loan repayments
– Reducing the amount of interest and / or fees you pay
– Paying off your loan more quickly
Or even potentially a combination of all three!
Who should consider a Home Loan Health Check?
The home loan market changes very rapidly and lenders are regularly reviewing their loan offerings. What was a competitive offer in previous years may now be far from the best option in the market.
It is therefore recommended that any borrower who hasn’t reviewed their loan in the last two years should undertake a review of the Home Loan.
Why do I need a Home Loan Health Check?
Unfortunately with our busy lifestyles there are some ongoing payments, such as our loans, insurances and utilities that we just pay each month without ever reviewing to see if we can obtain a better deal.
For many of us our loan repayments are our biggest expense, and yet with the day to day pressures of life we never really take the time to assess if there are more competitive options available.
Such a review could potentially save us thousands of dollars! Just consider a $350,000 loan in which the borrower’s interest rate is 0.50% p.a. more than could be achieved in the current market. The annual saving of improving the rate by 0.50% p.a. could be as much as $1,750!
Consider what the savings could be if the loan was greater than $350,000 or the improved interest rate was more than 0.50% p.a.!
What could you do with the extra money? Could you:
– Go on a short holiday!
– Improve your lifestyle
– Increase your repayments to pay off your loan sooner!
The best part of all is that by using a qualified loan specialist, such as a Mortgage Broker, you may be able to invest as little as an hour of your time to assess if you could save money on your loan, as the broker will do the research and comparison for you.
Your Mortgage Broker will require some basic information to do an assessment such as:
– A copy of your recent loan statement and/or 6 months transactions (showing your interest rate and repayments)
– A summary of your financial position (i.e. Assets & Liabilities, summary of income and expenses). Most brokers will have their standard ‘Fact Find’ document that you can quickly complete to provide this information.
So the only question for most borrowers is “should I spend an hour of my time to investigate if I can save money on my mortgage?
Arranging a Home Loan Health Check
If you would like to know more contact your local Mortgage Broker who can provide assistance in working through the options on offer and help you establish what will suit your personal circumstances
I am more than happy to assist and can be contacted via email at firstname.lastname@example.org or by phone on 0477 778 330