Why you should get regular home loan health checkups from an expert
Why you should get regular home loan health checkups from an expert
It is likely that the mortgage you took out with us when you first purchased your home would have suited your needs. Nevertheless, life happens, and things change – even our home loans. Therefore, it is always a good idea to speak with a Mortgage experts about your home loan.
As a result, this article discusses the following points regarding home loans
- What is home loan health checkup & Why do you need it
- Signs that your mortgage loan needs a checkup
- Home loan health check-up Benefits
- How to check the health of your home loan
- What an Expert Requires
- Refinance with Nfinity Experts
What is home loan health checkup & Why do you need it
In a home loan health check or mortgage health check, the loan is reviewed to determine if it is the right loan for your current financial situation and lifestyle. A sudden change in circumstances or priorities can result in a change in your original home loan or interest rate. Changes in circumstances can include a career change or starting a family.
A home loan health check is like a doctor’s checkup for your loan, in the sense that you’re taking a look at various factors to see if the loan you have is still the best one for you. This includes things like the interest rate, repayment type, and current property goals.
Signs that your mortgage loan needs a checkup
- Want to pay off your home loan faster?
- Not satisfied with your bank service?
- Is your home loan expiring soon?
- Circumstances is about to change?
- Struggling with current commitments?
- Planning for investments?
- Want to save more money in loan?
Home loan health check-up Benefits
Conducting an annual home loan health check – or even every few years – could save you a lot of money in the long run. This is because you could potentially be paying tens of thousands – or even hundreds of thousands – less on the total cost of your mortgage. Not to mention, the savings you make from your mortgage can also help you get a better handle of your other finances, thus improving your overall financial health.
Apart from the large benefit of saving money, there can be smaller benefits of conducting a home loan health check as well. For example, you might switch to a loan with a better customer service team, easier online management, or maybe you could find a loan with better features that suit your financial habits. All in all, it’s definitely worth looking into getting a home loan health check done at least once every few years!
How to check the health of your home loan
A mortgage expert can help you to do a home loan health check-up by looking at your current home loan, reading some of your documents, and estimating your financial position. Here are some of the things a mortgage expert considers when doing a home loan health check-up for you
1.Check your home loan rate
First, Mortgage Expert will evaluate your home loan interest rate, as this will arguably make the biggest difference to your home loan health. If your mortgage repayments are causing you stress, he will alleviate this by switching to a loan with a lower interest rate through refinancing.
To read more about refinancing Click here
2.Repayment Advice
Although reducing your repayments can give you more cash in the short term, paying more into your home loan each month can help you save much, much more over the life of the loan.
You can rely on an expert to help you evaluate the various repayment scenarios. For instance, if your loan’s minimum interest rate has decreased recently, you may want to keep your repayments the same, since you might be able to save tens of thousands. The same applies to making extra loan repayments, making larger lump sum contributions, or paying weekly or fortnightly rather than monthly.
If you adjust your payments too early, you may be subject to penalties. Consult our Nfinity Financial Advisors who are the best broker in Sydney before making any changes.
3.Evaluate your home loan fees and charges
You could also be overpaying for your home loan in terms of fees. Home loan monthly and annual service fees, redraw and offset fees, and late payment fees can add hundreds to the overall cost. There will be standard upfront fees if you decide to move to a new loan, such as application, valuation, conveyancing, registration, and discharge fees. If you decide to pay off your loan early, you will also have to pay discharge fees and early exit fees.
The mortgage experts at Nfinity Financials, one of the top Sydney mortgage brokers, can help you choose the right loan with low or no fees and better interest rates, thereby saving you hundreds of dollars every year.
4.Expert will check If you have a fixed term and if it’s about to end.
Generally, fixed home loans carry lower interest rates than variable loans. However, when a fixed loan term ends, the interest rate will revert to the lender’s standard variable rate, which could result in a large increase in repayments.
Expert will determine how long your initial fixed-term was. He will suggest that if the fixed-term is coming to an end, your repayments should be changed to a lower variable rate, keeping in mind the possibility of expensive break costs. In addition, if you’re still on a fixed-term loan when refinancing, he might look for a break cost, which could save you thousands of dollars.
To connect to the best mortgage broker of Sydney to save those thousand dollars
5.Suggestion based on your circumstances
You can get caught up in life when it comes to finding the perfect home loan. You should definitely review your current home loan if you have experienced any significant life changes, such as getting married or divorced, getting a new job or losing your job. A good way to get the support you need is to be honest with your lender about any changes you may experience.
6.Check for better home loan features
The home loan you currently have might lack some of the more attractive mortgage features, such as offset-redraw facilities, extra and lump sum repayments, and top-ups.
An expert will analyze these features in your current loan and recommend a cheaper loan that does not offer these features, or help you find a loan that offers these features but is more advantageous.
What an Expert Requires
In order to get a proper home loan health checkup, you must provide expert with the following information:
- Recent home loan statements
- Your property’s address
- All recent bills Copies and bank statements
- Assets & Liabilities Details
Regardless of your questions, our experts are here to help you through the home loan checkup process. This will allow you to save some extra dollars in this difficult economic climate.
Refinance with Nfinity Experts
The Nfinity experts can help you make the right home loan choice for you. Our Experts can recommend a number of affordable home loans with low interest rates, low fees, easy online management, and useful features. So call one of our friendly, expert lending specialists today to begin your home loan health check, and find out which of our ultra-competitive home loans offer the lowest rates.
To connect to us dial 1300 GET LOAN or 1300-438-562
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