Are you looking for a better interest rate?
Then it’s time to take our 1 minute home loan check to instantly see if we can save you money!
What’s a Home Loan Health Check?
A home loan health check enables you to possibly:
* Secure a lower interest rate.
* Save money long-term on your home loan.
* Reduce your home loan repayment costs.
* Consolidate debt.
* Gain greater home loan flexibility.
Why Should I Have a Home Loan Health Check?
We all lead busy lives, and for many of us this means that we forget to check the health of our home loan. In fact, most of us have a ‘set and forget’ mindset where we take out a home loan and then forget about it until it’s time to sell our property and move on.
But, as financial experts suggest, this can be costly as our circumstances change and the home loan we took out yesterday may no longer be suited to our needs today. Plus, with interest rates being the lowest they’ve been in decades then the loan you took out years back may not be competitive when compared to those in today’s market.
This could mean that you’re paying thousands more in interest than you should be.
What Changes Could Have Occurred in My Circumstances?
Changes in circumstances include pay rises, changes in employment, paying off car loans, or dependants have grown-up and become independent. These are all circumstances that may leave you with more residual income.
Therefore, adjusting your home loan to suit your situation can save you money. For instance, if you’re earning more, then you may wish to increase your monthly home loan repayment so that you pay your home off faster. You may also find that an increase in your pay entitles you to a larger variety of lending products.
What Other Benefits are Associated with a Home Loan Health Check?
When you first took out your home loan it may have been the best option at the time. Since then new features, such as an offset account and redraw facility may have been introduced, or even split loans, where you can fix a portion of your home loan and leave the rest variable. These types of features can reduce your home loan principal faster and can save you over the term of your loan.
You also may like to use the equity in your home to purchase an investment property, especially while interest rates are so low. Equity is calculated by subtracting the amount you owe on your home loan from your home’s market value. For example, let’s say you bought your home for $190,000 12-years ago and over that time you’ve paid $90,000 off your mortgage. Over the 12-years that you’ve owned your home its market value has risen to $425,000. Therefore, you have $335,000 in equity that you can possibly use to purchase an investment property.
Want to save yourself money? Then phone eChoice NOW and take our 1 minute home loan health check. It’s quick and simple.
Written by eChoice