Most of us make it a regular habit of visiting our doctor for a regular health check. But when was the last time you booked in for a home loan health check? Neglecting to do so might be costing you hundreds or even thousands of dollars each year.

More than eight out of ten Australians don’t know the interest rate they are paying on their home loan.

This surprising figure means that most Australians don’t know whether they’re getting a good deal on their mortgage, and as a result, you may well be paying too much.

What is a home loan health check?

A home loan health check is a simple 20-30 minute discussion to discuss mortgage structure, interest rate and repayments to make sure they’re still appropriate to your needs. It’s recommended you do this on an annual basis, just like the yearly check-up you should be getting from your GP.

Why should I get one?

Basically, if you don’t revisit your home loan on a regular basis, you are probably missing out on hundreds of dollars of savings a month, or the opportunity to invest any additional cash in repaying your loan faster.

Some other major reasons for a home loan health check include:

Your financial situation has changed

After several years of paying your mortgage, your financial situation may well have changed. For example, your children have left home or you may find you have money left in your paycheck each month to increase your mortgage repayments.

Even as little as an additional $50/month can make a huge difference to the interest you’ll pay over the life of the loan.

You might be paying too much interest

With interest rates on the rise, a health check is a perfect opportunity to renegotiate the home loan rate. This is particularly important for people who signed up for their mortgage over 3 years ago. You may find you are paying interest far above the market rate.

You haven’t considered other loan features

You may have signed up for your basic home loan -before you really knew about all the cash-savings features available-, such as an offset account or a linked debit card.

Similarly, you may have arranged your home loan with a range of additional features which you haven’t been using, but have been paying monthly charges on.

The best news about a home loan check is that instead of costing you money we’ll do our best to help you save money instead.  The next step is easy – schedule a call to set up a time to chat.