When was the last time you checked your home loan rate?

Tap into equity, consolidate your debts or find a better rate. These are just some of the reasons you should review your home loan rate.

  • 15 March 2019

    A busy schedule and lengthy term make it easy to forget about your home loan, but there are some great benefits in reviewing your loan on a regular basis.

    Woman sitting the floor, with a laptop on her lap and a dog laying behind her.

    Disclaimer: The information contained in this article is of a general nature only and should not be taken as financial or legal advice on any of the topics discussed. Always consult a financial adviser before making any investment decisions.

    The following material is not meant to constitute financial advice or credit assistance. You should seek your own professional advice. When choosing a home loan, most people will shop around to make sure they get a great deal. But getting the most out of your loan doesn’t end there.

    For time-poor professionals, it’s easy to lock in your home loan and then forget about it, but there are many benefits to reviewing your options on a regular basis. Here’s why:

    1. Keep an eye on your interest rate

    Negotiating a cheaper interest rate can save you thousands over the term of your home loan. This could also reduce your repayments, which means more money in your pocket each month. That extra cash could be used to pay off your home loan much quicker, or just give you the freedom to indulge a little more.

    You could use our quick and easy budget calculator tool, and in a matter of minutes you will be able to work out how realistic your financial goals are.

    2. A great time to consolidate your debts

    Refinancing your mortgage could present a fantastic opportunity to give your finances an overhaul and take control of any outstanding debt. Many lenders will allow you to combine personal debts such as credit cards or other loans with your mortgage, which could mean less repayments to maintain and a budget that is much easier to manage.

    This could also be a great chance to review how often you make repayments. For example, if your salary is paid weekly or fortnightly but your mortgage repayments are monthly, refinancing will give you a chance to align the two, further simplifying your budget.

    3. Increased flexibility and extra features

    If it’s been several years since you first took out your loan, many new features may have been introduced to the market that you’re not benefitting from. 100% offset accounts and alternative fee structures could allow you to reduce the cost of your mortgage, allowing you to pay off your home much sooner.

    4. Tap into the value of your home

    As the value of your home rises, most lenders will allow you to access any equity that has been built up over the years. If you’ve been waiting for the right time to renovate your home, buy a new car or take a much needed holiday, refinancing could turn the increased value in your into home a valuable asset to make your dreams come true.

    5. Keep an eye on the market

    Interest rates are at an all-time low, and locking in a competitive rate will let you capitalise on the current dip in the market. Knowing that your repayments won’t change for the duration of the fixed term can bring great peace of mind, helping to make your budgeting much easier.

    Interested in finding out more?

    Then book a free home loan health check today! Our home loan specialists can help you weigh up the pros and cons to help you find the right low interest home loan for your situation. No strings attached. No obligations.

    Remember, at Health Professionals Bank, we have a range of home loans that can suit anyone.


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