Your personal needs and circumstances will change throughout the years and it is important that your current home loan reflects this. A home loan that suited you when you bought your first home in your 20s may not suit your current circumstances 10 years later.
Not only is it important to find a home loan that suits you and your personal circumstances, but lenders also become more and more competitive when interest rates drop, so you could grab a great deal when refinancing your home loan and potentially save you thousands to help pay off your mortgage quicker.
It is in your best interest to review your home loan regularly. This will help ensure you that your loan and your needs remain well-aligned with each other. You will thus be able to reach whatever your goal is, be it to pay off your debt sooner or have lower monthly repayments.
How Often Should I Review My Home Loan?
Ideally, you should review your home loan every five years. By then, enough time would have passed to help you assess your loan in relation to the current stage of your life. For example, if you were newly-married when you took out your loan and had children during that five-year period, then you may have to adjust your loan to something that will help you stretch your budget further.
In this case, you can choose a loan with lower monthly repayments in exchange for a longer loan term. On the other hand, if your children have already left school, this leaves more room in your budget to make bigger monthly repayments and thus pay off your loan sooner.
Remember, the home loan market is very competitive and getting more and more competitive every year, so even though the standard review time may be 5 years, there is no harm in getting your Launch Finance broker to ask your current lender to review the rate. You never know you may just get an extra 0.10 – 0.20% discount for a quick phone call.
Whatever stage you are in your life, it is important to review your home loan regularly so that it continues to serve your needs well. Remember there is no one size fits all when it comes to home loans, so it is important to find the most suitable home loan for your present circumstances and needs.
If you or someone you know is looking to review their home loan, speak to one of our friendly brokers about your options and we will happily review your current home loan to see if we can get you a better deal.
Written by Joe Del Borrello.