How healthy is your home loan?

Australians tend to treat their health condition cautiously and as health-conscious people, we check up on our health regularly to make sure everything’s running smoothly. In light of the COVID-19 outbreak, we must take care of ourselves, our families, and the people around us more carefully.

However, when it comes to financial health check-up, people generally feel reluctant to have their financials reviewed. Some people may find it unnecessary to have regular check-ups if they don’t have any financial position changes. Some people may feel not comfortable to discuss their financial conditions. But bodies’ are not the only thing we should have checked regularly, we should think the same way about our financials – especially our home loans.

People may start to wonder how healthy is my home loan. Are there any standard criteria to measure just like how we measure a healthy body. Here are a few indicators you should be evaluated to make sure your home loan is still fit.

What is your rate?

We have mentioned in the past that people should get refinanced with the historical low RBA cash rate of 0.25%. Why? Because your lender will not automatically update your rate with the best market rate. This means that even though there are lenders who are providing super competitive rates starting from 2.09%, you will not be entitled to get it if you choose to do nothing.

You can easily find out what is best for you if you choose to do a financial health check-up with Credit Hub, or simply contact us for an update on the interest rate. When it comes to interest rated, you want them to be as low as possible. By refinancing, you will be getting a better rate and saving more money on repayments.

What is your financial position now?

Our financial issues can often be the result of some recent circumstances change, and that explains why your home that once fit perfectly suddenly inadequate. For instance, you might have lost your current job or you have started a second job, which changed your monthly income, leading to a diversified income stream. Or you might recently become a father or mother, and you just realized that living expenses have been increasing significantly. If you have been experiencing a major lifestyle change, you should probably consider a healthy home loan check-up to ensure your financial plan is updated to date.

What are your loan features?

Don’t put up with a home loan that withholds the necessary features you need to pay down your debt and build equity. You should know clearly about the loan features you are getting and understand why those are important to you. For example, for people who have extra savings, mortgage offset accounts can help you pay less interest and provide financial flexibility to homeowners. It’s definitely worth discussing with a loan expert to find out if your home loan is suitable for you.

What are your fees are charges?

No one likes to pay extra unnecessary fees and charges, and that’s why you should make sure you are not paying unreasonable fees and charges. Although the fees and charges may seem very small in comparison with the loan repayment, but it can app up to thousand in the long-term.

We understand that people may not have the time to actively manage their home loans, and that’s why we are here to help. Let us do what we do and that’s what we good at.

Credit Hub provides continuous loan service even after settlement, aiming to help our customers find the best loans. So, why not book a financial health check-up with us, let us deliver the best!