Happy New Financial Year!

We have just rung in a new financial year which is an opportune time to hit the reset button on your finances and maybe make the odd New Financial year resolution.

The steep rise of interest rates over the last year has impacted many mortgage holders in ways they were not quite prepared for, this coupled with the soaring cost of living has put incredible strain on household budgets.

With the volatility we have seen in the lending market in the past few years, we’re finding that many clients are cheating themselves out of savings by remaining apathetic about their home loan products.

The following is a list of mortgage holders we recommend reviewing their finances now.

Anyone peering over the Fixed Rate Cliff

When the RBA dropped the cash rate to an historic low in 2020, this flowed through to equally historic low home loan interest rates with many locking in enticingly cheap fixed terms. These are now starting to expire and unlike the mortgage holders with variable rates who have weathered gradual increases as rates have risen, those on fixed rates will see their repayments increase exponentially. If your fixed term is up or is about to be, a reveiw is a must as the increase in repayments will be catastrophic for many.

Anyone who has not reviewed their loans in the last 2 years

It’s no secret that the last twelve to 18 months has seen a huge shift in lending with consistent rate rises. However, lenders are scrambling to win new business and retain existing customers so a rate review with your mortgage broker is a must because there could be huge savings you are missing out on.

Anyone with both Owner Occupied and Investment Loans

As the finance landscape changed over the last few years so did the goal posts for mortgage pricing, with banks having higher rates for investment lending. Are you sure that you have the best of both worlds? It may pay to have your rates checked particularly if you want to ensure you are maximising your investment returns.

Anyone considering renovating or doing home improvements

Although rates have soared, property values have, for the most part, remained strong – for now. It’s easy to unlock equity you may have in your property to complete some much needed or longed for renovation projects. At the same time your existing lending can be reviewed and most likely rolled into a cheaper product.

Anyone who originally paid Lenders Mortgage Insurance but has since acquired more equity

Whether it be through paying your loan down or by acquiring equity through capital growth, if your original loan to value ratio was above 80% when you settled but is likely to be less than that now, you may potentially qualify for a more competitive rate.

Anyone who does not know what their rate is

If you don’t know what your rate is, then the chances are it’s not going to be as flash as it could be so it’s probably wise to check. The one aspect in life that is not “set and forget” is your home loan, so it’s always prudent to check in with it from time to time to know what you are paying.

Anyone who wants to pay off their loan quicker

And let’s face it, who doesn’t want to get rid of mortgage debt as fast as possible? The only way to achieve this goal is to get serious about it. Getting a competitive rate is the first port of call followed by a clear strategy for tackling your debt as swiftly as possible by arming yourself with all the right tools.

Our team of mortgage experts can ensure you have a competitive rate and suitable loan product that is working hard for you to realise your financial goals sooner. Call us today on 9429 5794 to start the New Financial Year off right.