When to health check your home loan
For most of us our home loans can be the elephant in the room, set and forget, no need to delve into it until it’s time to sell the home. In reality, this is far from the case. Much like we all need to work at our fitness to maintain our health, service the car to keep it running well and even go for the odd medical check-up, our home loan efficiency and fit-for-purpose should be constantly on your radar.
An annual Home Loan Health Check is the recommendation, maybe it’s calendarised at the same time as other milestones, like your tax lodgment or start of the school year – the idea is to lock it in, and get that elephant checked!
Why should you Health Check your Home Loan?
- Renovate, re-build, invest .Checking your current situation with repayments, interest rates and account features can also help to make decisions about plans to borrow further funds for a home renovation or perhaps to kick-start your investment portfolio.
- Life is always changing. On top of a regular schedule of loan check-ups, when life takes a new direction, whether that is due to a family addition, career change or other milestone, it is good practice to also review your loan arrangements to ensure they are aligned.
- Markets move. The lending market can be very competitive and changes occur frequently. Chances are, in the current low rate environment, there may be a loan solution offering better features than your current arrangement – and you have nothing to lose by asking the question!
- Maximise flexibility. In addition to competitive market rates, lenders also offer varying features as standard or as optional upgrades. Review features like debit cards, online management tools, offset accounts or ability to cater for additional payments to find the right solution for your needs.
- Consolidate debt. A review of your loan liabilities provides an excellent option to consolidate your debts with opportunities to reduce or eliminate additional account fees and management costs. Combine personal loans and credit card accounts into one single solution to simplify your borrowing situation.
Book your FREE loan health check with Loan Studio for your peace of mind that you are maximising the efficiency of your income, balancing your lifestyle and making room for savings.
Note: A half a per cent interest rate rise would mean $50 extra per month for every $100,000 you owe*
