There are a few things you can look out for that might indicate you’re overpaying on your home loan:
1. Haven’t considered refinancing for the past 2 years
Mortgage rates can fluctuate on a regularly, so it’s good to monitor them to make sure you’re still getting a good deal on your mortgage. Mortgage rates remain at record lows until 2022, so there is still time to set competitive rates.
2. You have found more competitive interest rates in the market
It is important to keep yourself updated with the interest rates the lenders are offering to their clients, whether you are considering refinance or not.
Observe the fees new customers receive from your lenders. If these new prices are lower than yours, you can try to negotiate a lower price.
Being satisfied with your home interest rates can cost you a thousands bucks over the years. Refinancing is probably not as complicated as you might think and is often very valuable!
3. You pay for features you don’t use
You can overpay your mortgage by paying feature that you are not using or irrelevant for you. For example, some borrowers find themselves paying an annual fee for an offset account that is completely empty.
When selecting a home loan product, check if you would want a more basic home loan rather than the one with all the features and fees that go along with the product.
4. You’re paying for too many fees
Having too many options from lenders nowadays on low fees, it isn’t practical to pay more in a home loan.
Compare your mortgages with different lenders to have a lot of options and decide which one suits you.
Keep in mind that zero-fee mortgages aren’t always the good ones. Example, some lenders would increase your interest rate to be able to compensate with the low upfront payment. Check your calculations to know whether fees are worth it or not.
How to avoid overpaying your home loan? You can consider booking a FREE CONSULT CALL with a mortgage broker. They will be able to help you assess your current home loan and determine if you need to find a better option.