Home Loan Health Check
A regular review of your home loan is a great idea. You should set aside time once a year to review it and see where you stand compared to the rest of the market.
This simple annual check could save you thousands of dollars. It’s commonly referred to as a home loan health check.
The best thing you can do is get in touch with a mortgage broker.
They can review your loan, check whether your interest rates, fees, and features meet your expectations, and compare them against the rest of the market to see if you’re still in the best possible position.
There could be potential savings available, and if your lender won’t come to the table, your mortgage broker can provide you with refinance options that better meet your needs.
How a Home Loan Health Check Saved Sarah $3,600 a Year
Sarah, a 38-year-old homeowner from Melbourne, had been with the same lender for five years. She hadn’t reviewed her home loan since purchasing her property, assuming she was on a competitive rate. After hearing about a home loan health check, she decided to consult a mortgage broker.
The broker discovered Sarah’s interest rate was significantly higher than current market offers. Despite her loyalty, her bank wasn’t willing to match better deals. With the broker’s help, Sarah refinanced to a new lender, reducing her interest rate by 0.75%. This cut her monthly repayments by $300, saving her $3,600 per year.
In addition to the savings, Sarah’s new loan included an offset account, helping her reduce interest further. The process was seamless, and she now plans to review her loan every two years to ensure she’s always getting the best deal.
This is certainly something you should do every 12 to 24 months, or whenever your financial situation changes. That’s a clear signal that you need to take full advantage of a home loan health check. There’s a lot to gain and not much to lose.
You could potentially secure lower interest rates, improve your cash flow, and save a lot of money.
The Role of a Great Broker
A Ballarat mortgage broker, acts as your advocate when completing a home loan health check. They stand between you and the lender, ensuring you get the best possible deal. With hundreds of lenders across Australia, it’s worthwhile speaking with a broker to see if there are more competitive rates and deals available for you.
A broker will guide you through a range of services, including loan comparisons, assistance with completing your application, refinance advice, health checks, and loan structuring. Mortgage brokers are typically paid by commission, meaning their services generally don’t cost you anything—they’re paid by the lender.
This is great because you receive expert advice and assistance at no cost. However, it’s important to ensure that your broker is licensed and accredited with all the relevant regulatory bodies.
Get a Home Loan Review
Ultimately, if you find a really good mortgage broker, you’ll save time, gain access to competitive rates, and receive tailored advice that puts you in a stronger negotiating position while giving you peace of mind moving forward.
If you’re considering reviewing your home loan, you should definitely reach out to the team at Rate Challenge. Their experience in reviewing home loans is second to none.
