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Take an interest in your home loan for a happier New Year

Read your home loan statement lately? Do you know your
loan’s interest rate? If your home loan paperwork is gathering
dust, make it a New Year’s resolution to get reacquainted in
2015. A simple review of your home loan could uncover serious
savings.

Reviewing your loan can be as easy as asking yourself these 5
simple questions:

1. What’s my home loan interest rate?
How does it compare with what’s being advertised today? There is aggressive
competition among lenders to secure new
customers. Make sure you know what rate you’re currently
on, and how it compares to current rates being
advertised. However, keep in mind that the lowest rate
isn’t necessarily what’s best for your situation.

2. What are my annual fees and charges?
Establishment fees, package fees, annual fees, exit fees – over the life
of a loan they add up! If your situation has changed
since you first took out your mortgage, speak to us to
see whether you may be able to avoid paying some of
the fees.

3. Is my loan type working for me, and for my financial
situation?

If you have a fixed rate loan, your repayments
are predictable, but you may hate it when you
watch rates dropping. Review your fixed rate loan when
you’re nearing the end of the loan term. Got a variable
rate? They fluctuate when lenders move their home
loan rates – which are often independent of the cash
rate cycle.

4. What are my loan features?
Am I making the most of
them? Your loan may come with features you don’t
use. Features such as the ability to make extra repayments
without penalty, or a redraw facility, giving you
access to your extra repayments. Unsure about the
features of your loan, or how they work? We can step
you through them.

5. All too hard?
Who can assist me? If chatting with multiple
lenders and researching an ever-changing market
isn’t your thing, talk to us!

Written by

Stephen Bonfield, the Managing Director, previously worked for one of Australia’s major home loan companies as an independent mortgage broker. Steve used this experience to set up his own mortgage broking company - a company that places customer needs at the forefront.

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