HOME > BLOG > Refinancing > Signs your Home Loan may need a Check Up

It doesn’t matter if you’ve had your home loan for one or 10 years, it can be extremely beneficial for you to do regular check-ups on your mortgage. So, what signs should you look out for?

Just like your health, it is important to regularly check up on your home loan to ensure everything is in order and you can tackle any problems before they become serious.

You may not realise what state your mortgage is in or how much you could be saving if you never review it.

It doesn’t matter if you’ve had your home loan for one or 10 years, it can be extremely beneficial for you to do regular check-ups on your mortgage. So, what signs should you look out for?

The fixed period is nearly over
This is the perfect time to review your home loan as your repayments are most likely going to change. Usually, when the fixed period ends, the interest rate reverts to the standard variable rate. So, as you will no longer be locked in to the fixed rate, you are free to compare other lenders to see which variable rate is the most competitive.

Interest only period due to expire
Most lenders will restrict your interest only period to a certain number of years and not the full term of the loan. If it is an investment property you may want to continue interest only past this time. When you are coming up to the expiry, contact your existing lender to see if they will extend it, if not you probably need to refinance to continue on an interest only basis. It is a great opportunity to see what rates are available out there that could save you money and increase the return on your investment.

Have too many other debts
If you find that you are struggling to meet multiple repayments on other debts, such as a personal loans and credit cards, you may be able to save money on interest by consolidating your debt into your home loan. This way, you will only have to worry about one repayment and if you fast track getting it paid off, you may save on interest while you are getting it paid off.

Haven’t checked the loan in a number of years
It is easy to become complacent with your home loan and just let the repayments regularly come out of your account. Review your budget and see if you can contribute extra  even if it is only small, then find some online calculators to see how much this could be saving you over the  life of the loan. By not regularly checking your home loan, you could be missing out on other home loan products and features that could save you money,  like having an offset account and  getting your savings to work for you by reducing the interest on your loan.

Also, with the lending industry becoming more competitive, there are often new home loan products and features being released. Fixed rates are also competitive at the moment so take the time to consider whether fixing might suit your situation. From time to time lenders offer specials to attract new business so if you time it right you may snare a super deal. It pays to keep an eye on the market generally so tag a comparison rate site or make sure you are on the mailing list from your lender so that you are up to date on all the latest. At the very least, you should try to review your home loan every 12 months. 

If you want to keep your finances healthy, then you need to regularly check up on your financial commitments and keep an eye out for any signs that may indicate they need a check-up.