With all the discussion about Banks increasing rates we thought we would share our Top 5 reasons why you should have an expert look over your current Mortgage.
1. I’m paying too much
Believe it or not but most people don’t know what interest rate they have on their loan. While it’s not necessarily a bad thing everyone really should know what their Bank is charging them. After all expenses are at the heart of a budget aren’t they? Not knowing what your interest rate is doesn’t mean you are automatically paying too much but you may be vulnerable to all of those small increases that Banks are well known for. That wonderful discount you were given initially may not even be competitive any more. How do you know what interest rates are available for you?
2. I’m considering buying another house
Even before you start searching for your dream home I strongly suggest that you look at what you can borrow. Finding your new home and not being able to get the finance for it would be a most unfortunate. Knowing what you can spend will make the negotiations much easier when you do finally decide to buy. Besides, things change quickly and the conditions under which you got your first loan may be completely different today. How much can you borrow in today’s market?
3. I want to invest
Investing demands more control and understanding of your finances than you may think. The options you need to maximise your borrowing capacity along with a structure that suits your goals may not exist with your current Lender. When you invest you need flexibility and safety. The type of loan should reflect the plan you have in place to support your investing goal. Remember, it’s the money that comes first, not the property. The equity you have available in your home can help to get you started building a property portfolio. The amount of equity combined with your income position will determine how you can get started. How much equity do you have?
4. I want to save money
There are a number of ways to save money. You may be struggling under the burden of other personal debts like credit cards or personal loans that you can’t get on top of. Consolidating those debts into your home loan can provide some relief though it’s important to understand that using long term debt like a home loan to consolidate short term debts like credit cards can work out to be more expensive. What consolidating does is reduce the repayments so you can budget accordingly. What debts could you consolidate?
5. I want to pay my loan off faster
There is more to paying your house off than a lower interest rate. Contrary to popular opinion, interest rate is not the most important factor in a Mortgage loan. Don’t get me wrong, it is a factor, just not the most important one. Flexibility is the key, with options to allow more repayments at any time. Unfortunately, not all Lenders embrace this concept of flexibility because it gives you control of your own money, rather than the Bank. What is your Bank doing to help you pay off your loan?
If you fit into any of these categories I urge you to make an appointment with one of our Mortgage Consultants now. Who knows what will happen tomorrow?