Review your home loan every 2-3 years
What do banks love? Customers who do not review their home loan. Those that get their loan and let it run along for 5 or 10 years without doing anything. They love you!! Why? Because it means that they do not need to offer you anything to keep your business. Also, because your loan has been with them for a while your interest rate would have slowly been creeping up as well.
Banks usually have their best offers for new to bank customers. You may have been with your bank for a few years on a rate of 4.35% but have the option to look at another bank at 3.90%. On a loan amount of $500,000 this is a saving of $2,500 per year. Over 4 years this is a saving of $10,000 – what else could this go towards?
A Broker is able to provide you with some options with what you could save if you were to refinance your loan.
Yes, it may be a little annoying with the paperwork, no-one likes that. Depending on the bank, there may not be too much information that is required. Provide your broker with a bit of information and let them get to work on saving you money.
If you have a car you have it serviced to make sure it runs efficiently. So, why would you not do the same with your finances. You could save on your home loan and use that money to reduce other debt. Or even save to go on that holiday or do something for yourself that you have been wanting.
Have you had your home loan now for 2 years or more? Contact me to see if I can save you some money.