Is it time for a home loan health check?
As life gets back to the ‘new normal’ it could be a good time to take stock of your personal finances. Perhaps you’ve been able to squirrel away some extra cash while you’ve been in lockdown, or have your savings been depleted over the past 2 years? With inflation rising and interest rates predicted to follow soon, it may be a good time to review your home loan. Here are a few questions to consider if you are going to review your home loan.
What is your interest rate?
Do you know the current interest rate you’re being charged on your mortgage? With the official cash rate predicted to rise, now might be a good time to compare your mortgage with current offers in the market. You can try our home loan comparison calculator to see how much you could save.
Have your circumstances changed?
If you’ve had some big life moments recently, like having a child, changed jobs or been through a divorce, it might be a good time to review your financial situation and credit products. If you’re finding your paycheck is being spread a little too thin each month, consider getting in contact with your lender, as they can discuss what support options they have available to help you out.
Is your fixed rate term coming to an end?
In most cases, if you have a fixed rate home loan, once the fixed rate term ends, you’ll automatically be rolled over to the applicable variable rate home loan. The variable rate could be much higher than the fixed rate you locked in when you first got your loan, so it’s a good idea to get in touch with your lender to discuss your options.
What type of variable rate are you on?
With interest rates set to rise, it’s worth checking out what type of variable rate you have. Knowing how much your loan repayments will change if there is a rate increase can help you budget or find a deal that suits you better. You may want to consider a fixed rate if predictability of repayments is important to you.
Are you planning to renovate or upgrade?
Did spending so much time at home recently highlight all those things you want to change at home? Looking to renovate your kitchen? Thinking about upgrading to a bigger house while property prices are holding steady? If you’ve paid down a large portion of your home loan, or you have benefitted from rapidly rising home values, you may be able to secure finance for your renovation or upgrade with your current lender. Check out our article on ways you can fund your home renovation.
Ready to compare home loans?
Head over to Credit Savvy’s home loan comparison service to see the latest offers in the market.