Home loan health check

Why You Need A Home Loan Health Check

Home loan health check

The Australian home loan market is constantly evolving, with hundreds of new products and specials every year. An annual home loan health check has the potential to save home thousands of dollars a year by making a simple product switch or taking advantage of new deals and rates.

Many home owners put off conducting a review of their mortgage facility because they simply don’t know where to start. Fortunately, mortgage brokers conduct reviews almost daily, and at Lendfin we provide the service for free. You may not even need to change your loan – our brokers can often uncover hidden features within your current loan set up and help you reduce overall costs and access more finance.

How does it work?

A home loan health check can take as little as 20 minutes and only needs to be done once a year. You will need to provide a copy of your latest home loan statement showing the balance and repayment schedule, the address of your property for an indicative valuation, and details of any other loans or credit cards you hold.

Your mortgage broker will assess:

  • Whether the current arrangements are on track to meet your financial goals
  • Whether you may be eligible for a lower interest rate or lower fee account
  • Your current loan to value ratio (LVR)
  • Whether you have access to other loan features such as an offset account or redraw facility.

They can also help with strategies to achieve your long-term financial goals, advising on how to pay off the loan sooner or access equity in your property.

What will you look for?

After discussing your goals and assessing your current financial situation, your mortgage broker will evaluate a list of criteria, usually including:

  • Interest rate. How does your current rate compare with what is available in the market? Many borrowers are so concerned with the interest rate that they forget to look at the fees they are paying on their home loan and associated accounts.
  • Loan structure. The loan structure includes factors such as fixed/variable rate, offset accounts, interest only structure and line of credit versus principal and interest loans. The broker will assess whether the loan structure is suitable for your goals, and may even suggest a more complex loan structure (eg. half fixed, half variable) depending on your situation.
  • Package inclusions. Many lenders offer home loan packages which include other facilities at a reduced price, eg. free credit cards or bonus interest on savings.
  • Refinance deals. Some lenders offer cash back deals, with up to $2,500 cash back as a refinancing bonus. Your Lendfin mortgage broker is up to date on deals across multiple lenders so can advise on current and upcoming specials at the time of your appointment.

An annual home loan health check is a great way to ensure your financial products are working for you. In many cases the health check is quick and simple, and your broker can simply contact your existing lender to negotiate a better rate. Generally, the longer you stay with a lender the worse your loan terms become in comparison to the market. A quick health check by Lendfin can save you thousands, so contact us today to book yours and get on track with your financial goals.