Home loan health check

What is a home loan health check?

Just like your physical health, a Home Loan Health Check is a regular check up to see how the loan is tracking. The process will compare your existing loan makeup against your current financial situation, taking into account any changes in your circumstances – for better or for worse – then comparing your new situation to what’s available on the market.

A good mortgage broker will be checking in with you regularly and should be across most of the changes in your financial situation. However, if you are curious or want to check for yourself, there are a few main things to review.

What’s involved

As with everything in building wealth through property, a bit of research goes a long way. A good first step is to have an understanding of what you would like checked. Look at your interest rate. How does it compare to what you see advertised by other lenders? If you think you’re paying an unreasonably high interest rate, it’s best to check.

Fees are also a consideration as loans progress. Are the fees you’re paying too high? A great question for your broker. On top of that, the service you’re receiving for those fees should match the outlay you’re making every payment. If you’re not happy with the service you’re receiving, that’s an indication your loan may no longer be right for you. However, be clear on what you want from a service point of view and understand the higher the level of service may equate to higher fees.

As you consider these elements, think about what does matter to you now that you’ve progressed further down the path to wealth creation. We all learn as we grow, so some features may no longer be necessary for your specific situation. You may even be paying for features you don’t use. In saying that, there may be some more advanced features which can help you achieve your goals faster. Knowing the market and what will suit your situation best is important.

As always, your financial situation is unique and your loan should reflect where you are now on your journey. A promotion or unfortunate loss of income may mean a restructure is in order. Only a thorough home loan health check will help you know if you’d be better off with a new loan.

Why switch?

A home loan health check is the easiest and simplest way to make sure you’ve always got the right loan for the right home. Just like seeing your doctor once a year, a home loan health check can identify savings and things to address well before they get out of hand.

As such, getting a home loan health check at least once a year will help you stay on top of your situation and grow your wealth in the most sustainable way.

A home loan health check will generally cost you nothing and could save you thousands. Not only that, your home loan features could be improved, or you could find yourself with a lower interest rate. A better payment structure could also be introduced, making your repayments more manageable as your capacity to repay evolves.

A regular home loan health check can also open up other possibilities for wealth creation, including the capacity for additional finance to consolidate debt or help purchase an investment property.

With the right guidance, anyone can create the life they’ve always dreamt of through property. To see if your home loan is still healthy for your needs, get in touch with our mortgage experts today.