In the busyness of daily life, it's easy to adopt a "set and forget" mentality when it comes to finances. And that includes the mortgage, often fading into the background once it’s in place, ignored for the duration of the loan term. But did you know that regularly reviewing your home loan can unlock a wealth of benefits? From saving money to shortening your loan term to accessing your equity, a mortgage review is an essential part of home ownership.
Capitalise on opportunities
Fluctuating market conditions and interest rate movements can change your mortgage repayments, potentially resulting in significant savings or additional costs throughout your loan term. Regularly reviewing your mortgage can help to identify opportunities to refinance at a lower rate or adjust your loan structure to save thousands of dollars in interest.
Tip: If the market has improved and your home's value has gone up, you might have more equity tied up in it, so it could be worthwhile refinancing your mortgage for better rates and terms or to access the equity to use for home improvements.
Stay in sync with changing needs
As life changes, so too do your financial needs and goals, and different stages of life call for different financial strategies. Whether it's a growing family, a new job, or an unexpected medical diagnosis, regularly reviewing your home loan will ensure it continues to align with your lifestyle and budget.
Tip: If your income is expected to decrease, refinancing your mortgage and extending your loan term could lower your fortnightly or monthly repayments and provide peace of mind for when finances are tight.
Save money in the long-term
Over time, your financial situation may improve, allowing you to pay more into your home loan. A mortgage review is the ideal opportunity to explore options to increase your repayments, shorten your loan term, or access features that save you money in the long run.
Tip: Work with a mortgage adviser to determine the ideal mortgage structure. By splitting your mortgage over both fixed term and variable interest rates, you’ll have certainty knowing how much your repayments are and flexibility to make extra repayments when you can to pay off your loan faster.
Enhance financial wellbeing
Many homeowners feel ill-equipped to make informed financial decisions, manage financial risks effectively, or plan for the future with confidence. By regularly reviewing your mortgage, you help ensure that it remains an integral part of your financial strategy, supporting your long-term goals and aspirations.
Tip: Managing multiple debts alongside your mortgage can be overwhelming. If you're struggling to keep up with repayments, refinancing to consolidate your debts into one manageable payment with a lower interest rate, could help you regain control of your finances.
Mitigate financial risks
Economic uncertainties and unexpected events can impact your ability to repay your mortgage. A mortgage review is the ideal time to assess any potential risks and implement strategies to safeguard your financial security.
Tip: Unexpected expenses can throw off your budget and leave you struggling to balance mortgage payments with other bills and expenses. A mortgage review could provide solutions, like refinancing to extend your loan term and reduce repayments or lock in a favourable rate if interest rates are expected to rise.
Get expert financial advice to help determine what’s right for you. Contact a Mortgage Express branded mortgage adviser today to schedule a review of your home loan. Our experienced advisers can assess your current mortgage, discuss your financial goals, and recommend strategies to maximise your home loan's potential.
