Happy new financial year! Our circumstances are always changing and with the latest cut in the RBA cash rate, now is a great time to give your home loan a health check. So, what are some questions you should ask yourself?
What is your interest rate?
Do you know what rate you’re being charged on your mortgage? Research commissioned by UBank found that only 16 per cent of Australians know the interest rate they pay on their home loan! The RBA cut the official cash rate to a record low of 1.75 per cent in May, so now is a great time to compare your mortgage with the current offers in the market. You might also like to try our home loan comparison calculator to see how much you could save.
Have your circumstances changed?
If you’ve recently had a child, changed jobs or been through a divorce, it might be a good time to review your financial situation and banking products. If you’re finding your paycheck is being spread a little too thin each month, consider getting in contact with your lender. You may be able to take a repayment holiday or your lender may have some other options available to help you out.
Is your fixed rate term coming to an end?
If you have a fixed rate home loan, once the fixed rate term ends you’ll automatically be rolled over to the applicable variable rate home loan. The variable rate could be much higher than the fixed rate you locked in a few years ago so it’s a good idea to get in touch with your lender to negotiate yourself a better rate.
Are you planning to renovate or upgrade?
Looking to renovate your kitchen? Thinking about upgrading to a bigger house? Now is probably a good time to evaluate your financial situation. If you’ve paid down a large portion of your home loan, you may be able to secure finance for your renovation or upgrade with your current lender.