Why it’s a good time to have a look at your home loan?

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While some people in Australia are lamenting that they wished they owned their own homes many home owners are wishing they would pay less interest on their mortgage. There is nothing more disheartening than seeing how your monthly repayments go into one pot of Principal (teeny tiny amount) and one pot of Interest (one of the biggest post you’ve ever seen).

There are many reasons to consider refinancing a mortgage whether it’s due to a lifestyle change, consolidating your debts or, you quite simply just want a better deal. With personal debt at an all- time high in Australia and with interest rates steady with the possibility of rate cut now is a great time to review your finances and see if you can save some money on one the biggest investments you’ve ever made!

If you’re sure you want to re-finance make sure you know why (see above) and make sure you’ve considered everything that goes with a debt: Job security, insurance etc. If you’re looking at doing some renovations or an extension one piece of invaluable advice is do not over capitalise on your home. So be sure to consult a real estate agent about what value you would be adding to your home with the proposed renovation s.

Of course some people re-finance just to alleviate a little bit of the budget which is a very good reason to do it. Just remember what is an amazing rate now may sky rocket in 6 months time so it’s important to have a chat with the lender about partial fixed rates/variable rates, it’s good for peace of mind.

Lastly if you’re looking purely to switch lenders; be careful to check all the fees and charges that switching incurs and make sure you consider this in your numbers crunching.

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