The ninth consecutive decision by the RBA to leave the cash rate unchanged at 2.5 per cent should prompt home owners to carry out a health check of their current home loan, says Aussie’s John Symond. “A home loan health check is one of the most important things borrowers can do to take advantage of some of the lowest interest rates in recent years before they start to rise, which some experts predict could happen later this year,” said Mr Symond, Founder and Executive Chairman of Aussie.
“However, it’s important not to change your loan for change itself, as the cost of refinancing might outweigh any money saved. If you’re happy with your loan’s features, a good way to go is ask for a lower interest rate from your existing lender, and a mortgage broker can help you do that,” Mr Symond continued.
Home loan health checks, which are cost and obligation free at Aussie, may reap a range of rewards including:
- Secure you a lower interest rate
- Save you money over the term of your loan
- Reduce your repayments
- Consolidate your debt
- Give you more flexibility to adapt to life’s changes.
Borrowers should consider the following when working out their home loan needs:
- Do you want to pay off your home loan faster than the loan term agreed?
- Are you planning to grow your family and therefore need to reduce your repayments?
- Do you want to expand your property portfolio with investments?
- Do you want to unlock equity in your home?
- Would you like to renovate?
- Are you hoping to move to a bigger home or a more expensive area, or both?
Refinancing fees or charges to watch out for may include:
- Borrowing costs such as loan application, valuation and settlement fees
- Mortgage registration fees
- Exit or break fees
- Lenders Mortgage Insurance if you’re borrowing more than 80% of the property’s value
- Charges for loan features such as redraw, branch and internet access.
“Now having 50 per cent of the market share of home loans, mortgage brokers have access to multiple lenders and loans and can compare hundreds of loans in minutes to recommend one more suited to you,” Mr Symond concluded. Home loan health checks involve completing a short form and meeting with a broker to discuss your needs. For more information or to organise a meeting, contact your local Aussie broker by calling 13 13 33.
Click here to download this press release.