Where you put your car keys, who won the footy premiership three years back, the new prime minister of New Zealand’s name – all very much socially acceptable things to forget. Your home loan rate shouldn’t be on that list.
It’s a fair bet that your home loan repayments are one of your biggest household expenses.
Yet it’s surprising how many borrowers haven’t kept up with what their home loan rate currently is.
In fact, a new report by Mozo shows that 42% of mortgage holders have no idea what interest rate they’re paying on their home loan.
And it’s an oversight that can cost home owners dearly.
How does your loan rate shape up?
It’s not just that large numbers of borrowers can’t pinpoint their loan rate.
Mozo also found one-in-five home owners have never compared rates since taking out their loan.
Your home loan may have had a competitive rate back in the day, but in a rapidly changing mortgage market, that may no longer be the case. And with the cash rate at its highest since late 2011, there’s little room for complacency.
For a quick check of how your home loan rate stacks up, head to your latest loan statement to find out what it is. It should show the rate you’re paying. Or call us, and we’ll let you know.
By way of comparison, the average home loan interest rate for owner-occupiers is currently 6.4%, and 6.3% for new home loans, according to the Reserve Bank of Australia.
Why it pays to regularly review your home loan
Staying on top of your loan isn’t just about the rate you pay.
Your loan might have been the right choice for you a few years ago. But our lives evolve, and your mortgage may not have the features you need for your current lifestyle and budget.
That’s why it’s worth taking a close look at your loan at least annually, or whenever you experience a major life change such as starting a family.
Understanding how your loan is performing for both rate and features is easy. Speak to us about a home loan review.
As part of our review, we can let you know:
- the rate you are paying;
- if your loan offers the features you want; and
- whether you could save by refinancing.
Is refinancing right for you?
If you’ve been wondering if you could do better on your home loan, give us a call today to discuss your refinancing options.
We’ll help you work out if refinancing is the right step for you and how much you could save by switching to a new loan and/or lender.
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