With interest rates moving considerably over the past 12 months, homeowners might be sitting on a loan that no longer suits their situation. Here are five signs it might be worth a review.
You haven’t reviewed your rate in over a year – Lenders regularly offer more attractive rates to new customers than existing ones. A mortgage broker can help compare what’s available.
Your fixed rate term is ending – Rolling onto a variable rate at expiry doesn’t always deliver the best outcome. Before your fixed term ends is a good time to review.
Your equity has grown – If your property has increased in value, a lower loan-to-value ratio may qualify you for a lower rate or allow removal of Lenders Mortgage Insurance.
Your credit position has improved – A stronger credit history or higher income since you first borrowed may mean you now qualify for products that weren’t previously available.
Your needs have changed – A growing family, change in income or plans to renovate can all mean your current loan structure no longer fits.
A mortgage broker can help you compare your options across a range of lenders.