4 signs it's time for a home loan health check

Over the past few months, many of Australia’s lenders have launched cash-back offers, refinance rebates and fee waivers to attract potential homebuyers. This, teamed with record-low rates, has caused consumer sentiment around property to improve.

But while borrowers are no doubt encouraged by rising sentiment and record-low interest rates, the fact is, rates will inevitably rise. If and when this happens, it pays to ensure you are in the right loan for your needs.

Indeed, regardless of the market conditions, it is imperative that you are in the right product – a product that is not only well-priced, but which has the appropriate features for your needs both now and into the future.

To ensure you are in the right product for your needs, it is wise to give your home loan a health check.

Your current home loan may have been the best available to you when you first entered into it – and it still may be.

However, why not make sure you are getting the most from your home loan and that you are being offered the best possible product to suit your needs?

Often, your circumstances change over the life of your loan. You may now be eligible for a greater range of products offering lower interest rates or additional facilities, which can save you money and assist you in paying off your loan quicker.

To find out whether or not there could be a better product out there for your needs, ask yourself the following:

• Have you received a pay rise since your last loan review?
• Did you have a single income when you secured the loan and now have access to dual income? Or vice versa?
• Have you paid off other loans, or do you no longer have credit cards?
• Are you paying a higher interest rate for facilities you are not using with your current home loan?

If you answered ‘yes’ to any of these questions, then it may be a good time for a home loan health check.

A typical example of how you can benefit from undertaking a home loan health check is your eligibility for a professional package.

If you have received a pay rise, you may now qualify for a professional package where lenders offer discounted interest rates, gold cards and home insurance discounts.

This can save you thousands of dollars and shave years off your loan. Conversely, it can help you build equity in your current loan faster, allowing you to purchase additional investment properties in the not-too-distant future.