Most of us make it a regular habit of visiting our doctor for a regular health check. But when was the last time you booked in for a home loan health check? Neglecting to do so might be costing you hundreds of dollars each year.
According to research by a subsidiary of NAB, more than eight out of ten Australians don’t know the interest rate they are paying on their home loan.
This staggering figure means that most Australians don’t know whether they’re getting a good deal on their loan, and as a result, may well be paying too much.
What is a home loan health check?
A home loan health check is a simple 20-30 minute discussion we’ll have together to discuss your mortgage conditions to make sure they’re still appropriate to your needs.
It’s recommended you do this on an annual basis, just like the yearly check-up you should be getting from your GP.
Why should I get one?
Basically, if you don’t revisit your home loan conditions on a regular basis, you could be missing the opportunity to save money on changed loan terms and interest rates, or the opportunity to invest any additional cash in repaying your loan faster.
Some other major reasons for a home loan health check include:
-Your financial situation has changed
After a decade of paying your mortgage, your financial situation may well have altered. For example, you may find you have money left in your paycheck each month to increase your mortgage repayments.
Even as little as an additional $50/month can make a huge difference to the interest you’ll pay over the life of the loan.
-You might be paying too much interest
With interest rates at record lows, a health check is the perfect opportunity to renegotiate home loan rates with your mortgage provider.
This is particularly important for people who signed up to their mortgage over a decade ago, who may find they are paying interest far above the market rate.
-You haven’t considered other loan features
You may have signed onto your home loan before you really knew about all the cash-savings features available, such as an offset account or a linked debit card.
Similarly, you may have arranged your home loan with a range of additional features which you haven’t been using, but have been paying monthly charges on.
Let’s do it!
Now you understand the importance of getting a home loan health check, the next step is easy – give us a call to set up a time to chat.
The best news is that instead of costing you money – like a visit to the doctor’s surgery does – we’ll do our best to help you save money instead.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.