Is my current home loan still working for me (or is it really just working for my bank)?

August 27th, 2012 by

So you’ve probably had your home loan for a few years by now.

And you’ve probably got quite a few years to go before it’s paid off!

Do you know whether your loan is costing you thousands of dollars more than it should be?

Chances are it is, unless you’ve been diligent enough to regularly review it within the current lending market.

It’s a long time since most banks gave personal service through a local manager to ensure your loan stayed relevant and competitive.  Instead, the competition is in the market:  hundreds of offers from numerous bank and non-bank lenders because they are all super keen to win new customers with great deals.

But are they doing much to keep their existing customers happy? 

Many are quick to pass on Reserve Bank interest rate increases, but not so quick with the rate cuts, if they pass those on at all! Maybe your loan package is no longer available to new customers because it’s uncompetitive with new loans on the market, but your bank won’t have told you that! They’ll be happy if you just keep paying them under whatever rigid terms you started with.

Unfortunately, most people take a ‘set and forget’ approach to their loan. Your loan repayments are a fairly major cost over 25 or 30 years, and really need to be reviewed every two or three years. Would you expect to keep the same car for that long without ever changing it over, or at least conducting some serious regular maintenance?  It pays to treat your home loan the same way.

Home loans vary so much on features, flexibility, fees and interest rate. Half a percentage point may not sound like much but even on a modest loan of $250,000, that’s about $75 a month, adding up to over $22,000 on a 25 year loan. Is that the sort of saving that might make a review worthwhile for you? And of course these costs or potential savings grow with the size of the loan.

To try and compare all the loans, features and fine print yourself would be daunting and impractical but No Fuss has the experience and expertise from doing this every day to give you a full review and a free loan comparison report. It’s a health check for your home loan and only takes an hour or two of your time to see how your loan is performing, or not!

As independent mortgage brokers we’re free to give you honest, impartial advice about your home loan or to recommend a new one to better suit your needs.

About The No Fuss loan review:  its fee-free, and obligation free.

  • First we review your current loan. The interest rate is important but so are any fees, features or restrictions, and how these fit your current situation.
  • We discuss your individual needs and plans. Maybe there are extra options you might find useful, or you pay for features you never use? There could also be an opportunity to consolidate some other debts in to a cheaper interest rate, or access your home equity for renovations, a boat, or a holiday?
  • Our experts provide you with a free Loan Comparison Report. It compares the various rates, costs, features and benefits on a range of suitable products against your current loan.
  • Or you might consider re-financing so as to consolidate some exiting debts, or access equity for renovations, a pay for a holiday, a car, or maybe even a boat.
  • To ensure you fully understand the differences between the loans or the lenders, we explain everything so you can make an informed choice whether re-financing is the right option for you., and which provider.
  • If you decide to re-finance, we organise all the transfers and paperwork and handle the negotiations on your behalf to ensure a seamless transition between lenders.
  • At the very least a thorough review can give you peace of mind that your current loan is working well for you – at a competitive rate, with the right features – for now.
  • As your needs change over time and the loan market evolves, future reviews will ensure you have the loan that gives the best value to you, rather than just to your bank.

 

 

 

 

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