Is your home loan still healthy? Here’s what to check

As interest rates shift and the property market evolves, your mortgage may not be something you set and forget. Just like your financial goals, your home loan needs can change over time, which is why it’s worth checking in regularly.

If you haven’t reviewed your loan in a while, now could be a good time to do a quick health check. Read on to see what your home loan health check could uncover.

Why reviewing your home loan matters

What worked when you first bought your home might not be the best fit anymore. A home loan review can help you assess where things stand today and whether there’s room to improve.

Here’s what you might uncover:

1. More competitive rates

Lenders are constantly updating their rates and offers. You might now have access to a more competitive offer than when you first signed your loan, potentially saving you interest over the life of the loan.

2. Lower monthly repayments

Securing a lower rate or adjusting your loan structure can reduce your repayments and free up extra cash. This can give you more room in your budget or allow you to redirect funds toward savings or investments.

3. More suitable loan features

Offset accounts, redraw facilities, and flexible repayment options can influence how effectively you manage your mortgage. These features can help you reduce interest and gain more control over your day-to-day finances.

4. A loan structure that fits

As your goals change, your loan should evolve with you, and changes in your equity position may allow you to restructure your loan more effectively. Whether that’s accessing equity for renovations or investments or rebalancing your loan to better match your long-term goals.

5. Simplified finances through debt consolidation

If you’re juggling credit card debt or personal loans, rolling them into your mortgage could reduce your overall interest rate and make repayments more manageable, giving you a clearer financial picture.

6. Improved equity position

As your property value grows and your loan balance reduces, your loan-to-value ratio (LVR) may improve. A lower LVR may provide more competitive rates, reduce or eliminate lenders mortgage insurance (LMI), and open up more refinancing options.

Small changes may help to reshape your financial future

Even if your loan seems to be running smoothly, reviewing it regularly may highlight areas to consider. Small changes such as discussing competitive rates or adjusting your repayment frequency (for example, switching to fortnightly payments) may affect your loan over time.

Too often, homeowners stick with the same loan for years without exploring other options. A home loan health check gives you the chance to stay informed and make sure your mortgage still aligns with your lifestyle and financial goals.

Ready to review your loan?

Your mortgage is one of your larger financial commitments, and it may benefit from regular review. As the market shifts and your personal circumstances evolve, a review may help you consider your available options.

Reach out if you’d like a home loan health check to see whether your loan still aligns with your current circumstances.