When it comes to your home loan, making sure you’re getting the most competitive deal could be worth thousands… Even a small difference in your interest rate can mean big money over the long run, and that’s just one part of the equation.
That’s why it’s so important to regularly review your mortgage to ensure it’s right for you. Speaking to a lending expert to help you do this is where you’ll get the best advice and as your mortgage broker, that’s what we’re here for.
But to help you get started, here are some signs to look out for that could mean it’s time to shop around for a new lender.
Your home loan is getting old
The days of staying with the same lender for 30 years are long gone.
In fact, if you’ve had your home loan for more than two years, chances are you could be paying more than you need to.
The home loan market is highly competitive and new products are being released all the time. As an example, you could benefit from loan features that you may not already have, such as;
- offset accounts (whereby any money you deposit is offset against your loan balance, saving you money on interest) or
- A redraw facility. This allows you to make extra repayments on your mortgage and save on interest, but you can still access and withdraw those extra funds at any time.
The honeymoon period is long gone
When you first take out a home loan, lenders may offer you a sweetheart deal to reel you in.
It’s not uncommon for them to waive fees or discount interest rates to new customers. This kind of loan arrangement is frequently referred to as a ‘honeymoon period’ or ‘honeymoon loan’.
But once the honeymoon is over, the loan may revert to a more expensive or less convenient loan than you would like. If that’s the case, it’s time to look at new options.
You’re not happy with the service
If you’re always chasing your lender about rates or ways to save, it may also be time to move on.
Similarly, if you’re sick of talking to a voice recording and crave real human interaction, there may be other lenders who place greater importance on customer service.
There’s no shortage of lenders out there and you may find that some are more able to give you the support you need.
Your needs are not being met
Life changes and when it does, it’s important to ensure your mortgage still meets your needs and goals. Maybe you’ve had a job change or promotion. Perhaps you’ve had a baby or your living arrangements have changed.
When these things happen, it’s a good idea to make sure your mortgage is still right for your needs.
Ready to shop around?
The easiest way to ensure your mortgage is right for you is to talk to us.
We operate under a statutory obligation (best interests duty) to act in your best interest when providing any credit assistance. Banks, however, are not required to operate under the same obligation.
We’ll assess which mortgage may be right for you, based on the cost of a product (the interest rate, fees, charges and repayment size, for example), and other considerations (such as loan features) which may be of value.
If it’s time for a home loan health check, get in touch with our Lending Specialists today – we’re here to show you the options that suit you. Call us on 1300 469 840 or send us an email to get started.
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