It is sad that many Aussie home buyers are simply unaware that like computers, cars and the human body, home loans too need to be checked up on from time to time. It’s a bit like running a virus scan on your laptop, getting the mechanic to give your car a service or paying a visit to the doctor once in a while just to make sure you’re in good shape. What’s even sadder is that nobody will usually reach out to you to tell you about the performance of your current home loan and how you could save money by tweaking things around a little.
The fact is, spending as little as five minutes a year could potentially save you not hundreds but thousands of dollars.
The things to consider when giving your home loan a health check vary greatly in nature. Since your interest rate is the most important aspect of your home loan, the first thing you will want to consider is whether or not you are paying a rate that is too high by the current market standards.
Using our RateContender tool on the SwitchMyLoan.com.au website you could run a fair and accurate comparison of current market standards, and then weigh out to determine where you fit in. Generally speaking, there is always a deal available out there that is better than the one you currently have with your existing lender. The only way to find out if you can beat your current deal is by looking around.
The second thing you will also want to consider is whether or not you’re paying any hidden fees associated with your particular type of loan. One way of determining this is by contacting your bank and asking whether as part of your existing home loan package, they are charging you for any special features that you neither need, nor use. If so, see if there is scope for getting rid of such features. These hidden fees are a bit like amenities fees that many universities often charge students, for providing stationary services most students don’t even need.
The third thing to consider is whether or not your personal financial circumstances have changed. Often, you may find that if you have changed your job, had a misfortune occur in the family, taken leave off work, started a new business or anything else that alters your existing pattern of life, it is well worth declaring these changes to your lender as there may exist provisions for lowering your interest rate based on your current circumstances. The only way to find out is by inquiring.
Chances are if you did look around, you would find a better deal. Here at SwitchMyLoan.com.au that is precisely what we exist to help you achieve!
Call 1300 307 155 and start saving today!
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