When was the last time you had a Home Loan Health Check?

When Was the Last Time You Had a Home Loan Health Check?

When was the last time you gave your home loan a health check? We often review our health, car, and even insurance policies, but home loans? They tend to get set aside once we lock them in. Yet, circumstances can change, interest rates shift, and your loan could be costing you more than it should. This is where a home loan health check comes into play—a simple review that could save you thousands and ensure your loan still fits like a glove.

So, what exactly is a home loan health check, and why should you care? Let’s break it down.

What’s Involved in a Home Loan Health Check?

A home loan health check is like a check-up for your mortgage. The idea is to see if your loan is still competitive, relevant, and suited to your unique situation. And don’t worry, it’s a lot easier than you might think! Annette Tothill Finance can handle this for you, either over the phone or in person. They’ll dive into your current loan, analysing its rate, fees, features, and structure, and then determine if there’s room for improvement.

It’s recommended to have this check at least once a year, or whenever you go through a big life change—think a new job, a baby, a change in your financial situation, or even just a shift in interest rates. The great news is that a home loan health check typically costs you nothing but can potentially save you thousands of dollars over the life of your loan.

Why Get a Broker to Do It?

Doing a loan health check on your own can be confusing, especially with so many loan options, rates, and features to sift through. Annette Tothill Finance has the expertise and access to a wide array of lenders, so they can quickly and easily tell you if your loan is as competitive as it could be. They’ll also help you understand your options without the stress, letting you make an informed decision without getting lost in finance jargon.

Key Questions to Ask During Your Health Check

A loan health check isn’t just a formality; it’s a way to pinpoint specific areas where your loan might be underperforming. Here are some essential questions to consider when chatting with Annette Tothill Finance:

• Am I paying an unreasonably high interest rate? Rates can fluctuate, and what might have been a great rate a few years ago may not be so appealing today. Annette will be able to compare your current rate with the market to see if you could be saving.
• Am I paying high fees? Loan fees can add up over time, and sometimes you may be paying for things you don’t even use or need. Annette can help you understand if you’re paying unnecessary fees and whether it’s worth looking at a loan with fewer costs.
• Am I happy with the service I receive? How’s the customer service with your lender? Are they responsive, easy to work with, and reliable? If the answer is “no,” then it might be worth considering other options.
• Does my loan give me the features I need? Features like offset accounts, redraw facilities, or flexible payment options can make a big difference. But if your loan doesn’t offer these, or if you’re not using them, you might not be getting the most out of your setup.
• Am I paying for features I don’t use? On the flip side, you might be paying for features you don’t actually use. Features can sometimes bump up the overall cost of a loan, so it’s important to check if you’re only paying for what you need.
• Have my financial circumstances changed? Life changes—whether it’s a new job, an increase or decrease in income, or a significant expense—should be reflected in your loan structure. Your Annette Tothill Finance can assess whether a different loan setup might be more suitable for your current situation.

Benefits of a Home Loan Health Check

So, why go through the effort of this health check? A home loan health check can have a huge payoff, not just financially but in terms of peace of mind too. Here are some of the key benefits:

• Potential Savings: Interest rates and fees are the big ones here. Even a slight reduction in your interest rate could save you thousands over the life of your loan. And with Annette Tothill Finance doing the comparison, you won’t have to hunt down every rate yourself.
• Improved Loan Features: Over time, new loan products and features come onto the market that might be better suited to your needs than what you currently have. A health check is an opportunity to make sure you’re getting the most suitable features for your lifestyle and financial situation.
• Better Payment Structure: Annette may suggest a different repayment structure that could ease the burden of your monthly repayments. For example, switching from monthly to fortnightly payments can reduce the overall interest paid on your loan, helping you get ahead faster.
• Debt Consolidation and Additional Finance: A loan health check can also uncover possibilities for refinancing or accessing extra finance. This can be useful if you’re looking to consolidate other debts (like credit card balances or personal loans) into your mortgage, potentially lowering your overall interest costs. Or, if you’re thinking about purchasing an investment property, Annette can discuss your borrowing capacity and available options.

Ready to Get Started?

If you haven’t had a home loan health check in a while, or if your life circumstances have shifted, it might be time to give your mortgage a quick review. It’s a simple process that Annette Tothill Finance can handle for you, often with minimal hassle, and the rewards can be substantial. You’ll get peace of mind knowing you’re not overpaying, and you may even discover new options that make managing your mortgage easier.

Remember, your loan shouldn’t be a “set and forget” deal. By taking just a little time each year (or with each major life change) to check in on your loan, you can stay confident that you’re making the most of your money. Plus, a good broker will make it all feel effortless. So why not take the plunge and see what a home loan health check could do for you? You might be surprised at the benefits waiting for you!