If your interest rate doesn’t have a 2 in front of it, you may be paying too much.
After settling a home loan, we find that borrowers repayments become a ‘set-and-forget’ process, as they know they can afford them.
However, many borrowers are potentially costing themselves thousands of dollars a year by not refinancing their loan. Why? Because every borrower’s situation changes over time.
Interest rates are currently sitting at historic lows, and if your interest rate doesn’t have a 2 in front of it, you may be paying too much.
If you have had your home loan for a few years now, it’s safe to say your life has changed in that time. You may have started a new job, received a promotion, or gone through significant life changes such as getting married or having your first child.
Equally, you might be near the end of a fixed rate term or interest only period, so, now would be a great time to find out what your loan options are.
Overall, refinancing your loan will allow you to ensure your home loan is in line with your current needs and finance goals.
As your life changes and finances become stronger, you might want to contribute more towards your home loan and get out of debt sooner.
You might also be able to structure your home loan and get more out of it by accessing features such as a redraw facility or an offset account. By paying your salary into an offset account, you can reduce the interest you pay on your mortgage each month. A redraw facility allows you to access any additional repayments you have made on your loan.
Alternatively, you could also switch to a simpler home loan with less features if you no longer require all of your current features.
Whether you are looking to switch loans for access to new features or to simplify features, Menzies Financial Group can help you find and secure a competitive loan option.
Contact our team for more information or to schedule an appointment.