At Hatch Financial Services, we know how critical it is to undertake a review of your home loan from time to time. As a mortgagee, you want to ensure that your loan remains complementary to your lifestyle, bringing you ever closer to your financial goals. You also want to know that you’re getting the full benefit of your loan’s features.
But how to undertake such an audit – and when should you consider revisiting your home loan to see if it’s still a good fit? In today’s Hatch Financial Services blog, we take a closer look at the life stages and personal circumstances which call for a closer examination of your loans – and how refinancing can work to your advantage. Whilst surveying your financial situation and loans with a broker makes good sense at any juncture, you should prioritise auditing your loans if you:
If you’ve not reviewed your loans in the past two years.
Rates and lender offers are constantly in flux. Do you know what’s out there? Your current home loan may be out of touch with a competitive lending environment, and it’s possible you’re paying a higher rate than you need to. Need an example? Just five years ago the Commonwealth Bank of Australia (CBA) could only offer a clunky, non-user-friendly version of an offset home loan. Today, CBA offers one of the most functional offset home loans on the market – with the added benefit of being able to have multiple offset accounts for one loan. This can be useful in a range of situations. Curious? Reach out to Tim at Hatch Financial Services to learn more.
If you’re considering a big purchase.
Dreaming of cruising along the Great Ocean Road in a new car come summer? Looking to fund a personal project you’ve been passionate about for some time? You may well be able to borrow the funds you need – either against your home loan or within your home loan, enjoying a far lower interest rate than a traditional personal loan and with better conditions to boot. Before you spend bit, take the time to review your existing loans and consider your options.
If you’re making a big change to your family circumstances or lifestyle.
If you’re planning to start a family, it’s an excellent decision to get your finances in order while you are working – rather than undertaking the task during the bustle of maternity leave. Save yourself the stress and consider refinancing sooner rather than later. Additionally, you may be looking to use the equity in your home to renovate or extend. They’re another two terrific reasons to review your loans!
It’s important to note that refinancing does not necessarily mean moving lenders. In many cases, the team at Hatch Financial Services can re-negotiate lower rates for you with your existing lender or arrange a simple migration to a newer, more functional loan product. You’ll end up with a better result – without having to move lenders!
If any of circumstances we’ve identified apply to you – or you’re simply curious to learn more about how refinancing could benefit your financial position – get in touch with the team at Hatch! We’re here (and happy!) to help.