It’s a good idea to review your financing arrangements regularly and what better time of year to estimate the health of your home loan finances than spring?
Whether you’re an avid character investor, a first home buyer or somewhere in between, if you’ve got at the minimum one mortgage it pays to review your set-up every year.
Reviewing your finances can be advantageous for a number of reasons. First of all, you might discover additional features or a more cost effective loan repayment set-up – such as larger repayments or additional repayments – could save you serious cash. Interest rates are now exceptionally low and competition is driving some very attractive product ranges, which may offer meaningful savings. If you’ve got personal loans and credit cards, a financial spring clean could help you get on top of your debt and put you in better stead for your future.
New home loan opportunities
A spring clean may also help you to unearth new opportunities. Perhaps you’ve acquired a fair bit of equity that could be used to fund renovations, a trip overseas or another character buy. In fact, if you’re thinking about cracking the market in the months ahead, it’s particularly pertinent to estimate your finances and discover what opportunities you could take advantage of.
It’s hard to imagine anyone’s circumstances remaining the same for long and so a financial check up is also important in ensuring you adjust your finances to suit your situation and priorities. From marriage to employment arrangements, children and travel, all of these factors affect our finances and so it’s important to ensure your home loan meets your changing needs. For example, did you know, if you’re far enough ahead on your loan repayments, you might be able to take a repayment ‘holiday’? If a change is on the horizon, which may impact your ability to service your loan, this could be worth exploring.
In preparation for your financial spring clean, make sure you think carefully about your spending habits and any changes to your circumstances that might be on the horizon. It’s also important to mirror upon your financial goals, whether they have changed and how close or far you are from achieving them. This will help you in assessing your arrangements and calculating any changes you might like to make.
So whether it’s going to save you money, open new opportunities or simply deliver the peace of mind that your financial future is on track, a financial home loan spring clean is a worthwhile addition to your to-do list this spring.