Whenever we think of New Year’s resolutions, we always seem to commit to improving our physical well being rather than our financial well being.

Whether that involves signing up to the gym, getting a personal trainer, or subscribing to a healthy food delivery service. More often than not, it costs us money and the resolution doesn’t stick.

But there is one New Year’s resolution that will cost you nothing except for some of your time in January, and you’ll reap the benefits of it all year.

Put simply: it’s committing to a home loan health check.

And there’s no better time to do it than straight after Christmas, which is when all those extra festive season expenses are finally out of the way.

Why you should have a home loan health check

Many people don’t know the interest rate they are paying on their home loan.

This means that most people don’t know whether they’re getting a good deal on their loan, and as a result, may well be paying too much.

This is why making a home loan health check your New Year’s resolution is so important!

Back up a tick. What is a home loan health check?

We will send you out a Statement of Position to complete and return, once we have that back we will do some background work prior to your consult.

The consult itself usually takes around 30 minutes, we look at your current loan structure and ensure its still meeting your financial needs.

It’s recommended you do this on an annual basis, just like the yearly check-up you should be getting from your GP.

Why should I get one?

Basically, if you don’t revisit your home loan structure on a regular basis, you could be missing the opportunity to save money on changed loan terms and interest rates, or the opportunity to invest any additional cash in repaying your loan faster.

More often than not people are able to down pay their mortgage faster than the standard 30 years but don’t realise it. Even a small amount a month can mean you make a huge saving over the years in interest costs.

Some other major reasons for a home loan health check include:

Your financial situation has changed

After a decade of paying your mortgage, your financial situation may well have altered. For example, you may find you have money left in your paycheck each month to increase your mortgage repayments.

Even as little as an additional $50/month can make a huge difference to the interest you’ll pay over the life of the loan.

You might be paying too much interest

With interest rates at record lows, a health check is the perfect opportunity to renegotiate home loan rates with your mortgage provider.

This is particularly important for people who signed up to their mortgage over a decade ago, who may find they are paying interest far above the market rate.

You haven’t considered other loan features

You may have signed onto your home loan before you really knew about all the cash-savings features available, such as an offset account or revolving facility.

Similarly, you may have arranged your home loan with a range of additional features which you haven’t been using, but have been paying monthly charges on.

Bring on 2023!

Now you understand the importance of getting a home loan health check, the next step is easy – give us a call to set up a time to chat in January.

We’ll work with you to ensure your 2023 New Year’s resolution is not only the best one for your well being, but one you’ll actually stick to!

 

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.