REFINANCING YOUR CURRENT LOAN
There are many reasons that Mortgage holders decide to review their current Loan situation.
Common reasons which may mean it’s a great time to review your loan are.
Review your interest rate
Interest rate is a huge factor for a lot of home owners. Paying an interest rate which is well above the market average or not competitive can cost you so much more over the life of the loan. A lot of brokers will recommend you review your loan every 2-3 years to ensure your rate is still competitive and the best available for your personal situation. If it has been many years since you last reviewed your home loan it may be time to think about it!
Access your equity
Have you spent the last few years paying your loan down religiously and putting everything extra you have off the mortgage. Perhaps you know that your suburb has seen some decent price spikes in recent times and you believe you have equity in your property which you would now like to utilise. Whether to make improvements on your own property or look at purchasing another one this is a great time to review the loan you are in! You are looking to increase your overall borrowing which, depending on the size of your loan, could mean you are eligible for higher discounts.
Changing your loan type
Has your loan just come off a fixed rate? Have you decided it’s time to stop riding the variable wave and lock part of your loan in? These are all great times to review your loan situation. Fixing your loan means you are committing yourself to that lender for the fixed term, so making sure you get a great rate during that time is essential! If you are coming off of a fixed rate a lot could have changed during that time and ensuring the variable rate you go back onto in very important. A change to your loan presents a reason and opportunity to review!
Change in you personal situation
Maybe when you originally took out your loan you were a single couple and now you have children, or perhaps you were early days of a new job but you are now a long term employee with a pay packet to match. Changes in your personal circumstances are an important reason to review your loan. You may be about to experience change and you need to look at getting yourself set up for when this happens.
Whatever your reason, take the time to sit down and review your loan, as your home mortgage broker let us help you match your Home loan option to your needs and wants!