Are you getting the most out of your home loan?
Most of us are busy working to pay off our biggest debt which is our mortgage and achieve the Aussie dream of being mortgage free. We set up our home loan and repayments and get on with life, but things do often change. Personal and financial circumstances are likely to change as life goes on and the mortgage you may have taken out years ago may not be the best choice for you now.
We recommend that everyone should re-evaluate their home loan from time to time but especially when major changes happen in your life.
Before you start your comparison note down what is important to you and what your goals are. Here are a few suggestions to help you create your list:
- Do you want personal service? Do you want to be able to pick up the phone when you have a question and speak to your lender?
- Do you want a loan that has minimal ongoing fees?
- Do you want to be able to build up equity quicker by being able to pay weekly or fortnightly repayments rather than monthly repayments?
- Are you thinking of buying and selling in the near future? If so you want to make sure you find a lender that does not charge you fees or penalties for paying your loan off sooner.
Our number one tip is to always check the comparison rate as it includes both the interest rate and other costs such as establishment fees, approval fees, any upfront or ongoing fees that comprise the overall cost of a loan. If you compare comparison rates you are comparing the true interest rate of the product. We tell people just because you can get a good rate doesn’t necessarily mean the product is the best for your circumstances and it is important to always check the features of any financial product you intend to use to ensure the product or service meets your needs and goals.