How Much Can Low Interest Rates Save You on Your Home Loan by reviewing your home loan options?
Securing low interest rates is one of the most effective ways to reduce the overall cost of a home loan. While no one can predict exactly where rates will go, understanding how low interest rates work and reviewing your loan regularly can help you make the most of your borrowing.
How Low Interest Rates Affect Your Mortgage
Interest rates change over time, and the movements set by the Reserve Bank of Australia can flow through to the rates lenders offer on home loans. When rates move, it can be a good prompt to review your existing mortgage and check whether it still suits your needs. Depending on your loan, reviewing your options could make a difference to your repayments over the life of the loan.
Another way of reviewing your finances is by refinancing your existing home loan or investment property. It could be that products have changed since you first committed. Your lender may not be offering the best rate anymore and you could be paying too much.
Reasons you may consider re-financing your Home loan or Investment Property:
Get a Lower Interest Rate: Fixed rate period on your current loan is expiring and is changing back to a higher variable rate Cash Out on the Equity: Your property has increased in value and you would like to use the equity to cash out for renovations or use towards purchase of an investment property Lower Repayments: You may want to reduce your repayments by moving to a lower interest rate or changing loan products Pay off your loan quicker: You can afford to pay off the loan faster and want to re-finance to reduce the term Consolidate other debts: You want to consolidate other debts such as car-loans, credit cards or personal loans.
When Is a Home Loan Review Worth Doing?
A home loan review is simply a check of whether the loan you signed up for still matches the way you live now. Most people set a mortgage up once and then leave it alone for years, which is understandable, but a lot can change in that time. Your income may have shifted, you may have paid down a meaningful part of the balance, or the features you needed at the start may no longer be the ones you use.
A few situations make a home loan review particularly worthwhile. If you are coming off a fixed period, if your property has grown in value, if you are carrying other debts you would rather consolidate, or if you simply have not looked at your loan in a couple of years, it is worth putting it under the microscope. Reviewing does not commit you to changing anything.
The point of a home loan review is information rather than pressure. Sometimes the answer is that your existing loan is still doing its job and the sensible move is to leave it where it is. Other times a review turns up features, structures or lenders that fit your situation better than the one you are in.
What can we do to help?
Because low interest rates can make such a difference over the life of a loan, it pays to review your options regularly. At SB Finance we can assist with refinancing your Home loan and help you find a loan that suits your situation. We offer an obligation free service and can help you understand whether low interest rates could benefit your situation and will ensure we are professional and responsive. Refinancing doesn’t have to be with your same lender. We have access to over 35 of Australia’s biggest lender and can help you find the right loan for your needs and circumstances. Speak to our team of experts to see if refinancing your home loan can be beneficial for you as re-financing a home loan can sometimes have costs associated. For more information, speak to one of our team and see if we can offer a free home-loan health check.
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Disclaimer – SB Finance (aust) Pty Ltd (trading as SB Finance ABN: 72 620 392 038) provides factual information, general advice and services on financial products as a Licensed credit representative (499191) of Larrijade Pty Ltd t/as Drive Finance Australian credit license 393048.We can also provide you with general advice and factual information on a range of other products, services and providers. We hope that the information and general advice we can provide will help you make a more informed decision. We are not owned by any Bank or Insurer and we are not a product issuer or a credit provider. Although we cover a wide range of products, providers and services we don’t cover every product, provider or service available in the market so there may be other options available to you. We also don’t recommend specific products, services or providers. If you decide to apply for a product or service through our website you will be dealing directly with the provider of that product or service and not with us. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide. If you are unsure you should get independent advice before you apply for any product or commit to any plan. © SB Finance.
