Buying a home is a significant achievement, but the excitement can be quickly overshadowed by the burden of a mortgage. Many Australians opt for a “set and forget” approach to their home loan, assuming that the deal they initially secure d is the best available. However, this can cost them in the long run, as interest rates fluctuate, and new home loan products with better rates and features emerge. That’s why a home loan review is crucial.
In this blog post, we’ll explore the benefits of taking the time to review your home loan, so you can save money, access new features, and have peace of mind.
Do not ‘set and forget’
Many people adopt a “set and forget” approach to their home loan, which can be a costly mistake. In fact, as many as 85% of Australian mortgage holders are not taking any action on their mortgages, and 75% were unaware on the impacts of cash rate hikes on their home loans. With our current cash rate cycle, this translates to thousands of savings lost because of mortgage apathy!
While it may seem easier to set up a home loan and forget about it, interest rates fluctuate, and new home loan products with better rates and features emerge. This means that the deal you initially secured may no longer be the best available. By not reviewing your home loan, you could be missing out on potential savings, such as getting a better interest rate or refinancing with a new lender.
Ultimately, a “set and forget” approach could end up costing you more in the long run. Therefore, a regular home loan review is a must to ensure that your mortgage still meets your needs and that you have access to the best rates for home loans in the market.
What is a home loan review?
A home loan review is basically when you take a good, hard look at your current mortgage situation. You assess your current interest rate, fees, and charges and compare it to what’s currently available in the market.
Plus, you also take into account any changes to your financial situation that might affect your ability to keep up with your repayments. By doing a home loan review, you could end up saving yourself heaps of cash by either refinancing with a new lender or negotiating a better deal with your current one.
Reasons why you should do a regular home loan review
1. Save THOUSANDS in mortgage interest
If you’ve had your home loan for a while, there’s a good chance that the interest rate you’re paying is no longer competitive.
By shopping around and comparing the interest rates and fees of other home loan lenders, you may be able to find a better deal that saves you thousands of dollars over the life of your loan. For example, if you have a $500,000 home loan with a 4% interest rate, refinancing to a loan with a 3.5% interest rate could save you around $40,000 over 30 years!
2. Access new home loan features
Home loan products are continually evolving, and new features are being added all the time. By reviewing your home loan regularly, you can access new features such as redraw facilities, offset accounts, and flexible repayment options.
3. Do a home loan comparison
If you simply want to compare home loans just to see how competitive you current rate still is, a home loan review is the perfect opportunity to do so. At Stryve Finance, part of our free home loan review process is to compare home loan interest rates, fees, loan features, and other aspects of home loans to see if there’s a better deal out there for you.
With our wide panel of lenders and specialist knowledge, we can compare home loan options for you that are not easily accessible to you if you were to do your own research. We can also tailor our recommendations to your specific needs, rather than simply recommending the loan with the lowest interest rate.
4. Free up cash flow
If you’re struggling to make your mortgage repayments, a home loan review can help you identify areas where you can reduce your expenses and free up cash flow. For instance, when you review your home loan and determine that refinancing is the most practical option, you could free up some cash to pursue your other financial goals.
You could consolidate your debts (e.g., personal loans, car loans, credit cards) into one loan with a lower interest rate so you could reduce the amount of interest you pay over time.
You could also be refinancing home loan for renovations or to invest in another property by accessing your equity when you refinance.
5. Peace of mind
If you’re someone who values their peace of mind over anything, then a home loan review will definitely help you achieve that.
With a home loan review, you can:
- identify any issues with your loan, such as hidden fees or unfavorable loan conditions, that could be affecting your finances negatively;
- help you improve your financial situation;
- help you plan for the future, by ensuring that your loan is structured in a way that aligns with your long-term financial goals (e.g., switching to a loan with a more flexible repayment schedule or one that allows you to make extra repayments without penalty); and
- feel more in control of your finances and give you greater peace of mind.
Get a FREE home loan review at Stryve
Looking for a free home loan review and expert mortgage broker services? Look no further than Stryve Finance. We specialise in helping homeowners seeking to optimise their mortgage arrangements. Click the button below to book an appointment with our brokers.
