Should you refinance?

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How to switch home loans to save money

As your life changes, so do your finances. Mortgage repayments are often the largest expense in your budget.  Do your home loan payments still fit your lifestyle?

If anything has changed in your personal life, or career, since you first took out your home loan, it may be time to contact your broker for a mortgage health check. Your mortgage broker will know what loan products may be worth prescribing for your better financial health.

Here are five triggers worth calling your broker for:

You want to pay off your mortgage sooner

If you feel like your repayments aren’t even tickling the surface of the principal you’ve borrowed, it may be time to assess whether your home loan needs an overhaul.

You’ll want to talk to your mortgage broker about loan products designed to motivate you to repay your mortgage faster.

While switching loans will attract fees, finding the right product to help you meet your goals, will save you a lot of money in the longer term.

Your repayments are killing your cash flow

In a competitive mortgage market, it is always worthwhile to invest time shopping to find a loan product that will offer you an optimal financial present and future.

A lower variable rate loan or locking in to a fixed rate for a set period of time, may help you free up some cash flow, or pay your mortgage sooner.

Contact your mortgage broker, share your goals with them and let them do the groundwork to help you unlock more cash flow.

Monthly service fees add to your financial burdens

Monthly administrative fees on top of paying interest, can add to your budgeting woes. In a competitive market, many lenders will waive administrative fees.

A conversation with your mortgage broker, is a great way to explore the benefits you may be able to gain by switching loans. Your broker will also help navigate you through loan switching fees that may be applicable.

Multiple debts are getting out of control

The high interest that credit cards and personal loans attract, can leave you feeling like you’re getting nowhere with paying down your debt, fast.

Consolidating these debts into your home loan can save you thousands of dollars of interest and free up some cash flow. Rolling multiple repayments into one, can also save administrative hassles and time.

You want to unlock some equity in your home

There are many advantages of home ownership over renting. One of the main advantages of paying off a home loan is that you’ll accumulate equity in your home. Capital appreciation in a well chosen property will add to the equity that you may be able to leverage.

Refinancing your home loan can help you unlock some of this equity, and start building investments to secure your financial future.

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