A mortgage is likely to be one of the biggest expenses of your life, and a major financial investment, but once you’ve found the right one for you, who’s to say that it will remain the right one for you, years down the line? With such a big chunk of your money being expended annually, it pays to be sure that you’re still getting the best rates, and the best of way of doing this is to engage with a broker who can help you conduct a review of your current mortgage. Some refer to this as a home loan health check, but whatever you choose to call it, carrying out a review of your current mortgage could help you take advantage of new market conditions, and potentially save big in dollars:
How likely are you to save money with a mortgage review?
Engaging with a broker and switching mortgages could lower the amount of interest you pay and give you access to other attractive loan features, such as a lower annual package fee. Depending on your existing mortgage, the paperwork required for a comprehensive review should be minimal in comparison to what you might be able to save. When adding up the associated costs of switching mortgages - which your broker will help you to do – you need to think carefully about the payback period; how long it will take you to recoup the cost of switching. Some homeowners switch lenders and quickly make the cost back, while for others, it might take a few months or even longer.
How often should you conduct a mortgage review?
One way of looking at a mortgage review, is to think of it as a tax return and do it annually. Markets change and trends come and go, and the only way of staying abreast of these is by reviewing your mortgage, and the more often you do it, the more likely you are to take advantage of any savings.
Reviewing your mortgage has the potential to save you hundreds of dollars, but it’s important to get the right advice and guidance when doing so. An experienced mortgage broker will have in depth knowledge of all the latest changes to the lending market, and all the current trends, and can give you advice that is tailor made to fit your financial circumstances. How often you conduct a review is up to you, but with expert help, it’s a simple process that can easily be carried out once a year.