Time for a home-loan health check
With 30 June just around the corner, now is a good time to determine whether your mortgage is fit for purpose.
As the end of the financial year (EOFY) approaches, it’s the perfect opportunity to assess your financial position and make sure you’re getting the best deal on your home loan.
For many older Australians, reviewing your mortgage can uncover potential savings, improve financial security, and help you plan for retirement.
Here’s why an EOFY financial health check should include a home loan review.
The EOFY is a critical period for financial planning. Lenders often introduce competitive offers, interest rates may fluctuate, and government incentives or tax benefits could apply to your situation.
Evaluating your mortgage now ensures you’re not paying more than necessary and can help you make informed decisions about refinancing, downsizing, or adjusting your repayment strategy.
Interest rate comparison
Home loan rates change over time, and your current rate may no longer be competitive. If you’ve had your mortgage for several years, check whether lower interest rates are available. Even a small reduction in your interest rate can lead to significant savings over the life of the loan.
Loan features and flexibility
Does your home loan still meet your needs? Features such as offset accounts, redraw facilities, and flexible repayment options can help you manage your finances more effectively. If your current loan lacks these benefits, it may be worth exploring alternative options.
Refinancing opportunities
If your financial situation has changed, refinancing could help lower your monthly repayments, consolidate debts, or access home equity for investments or renovations. However, consider any fees associated with switching lenders and whether the long-term benefits outweigh the costs.
Loan term and repayment strategy
As you approach retirement, adjusting your loan term or switching to a more manageable repayment plan can improve financial security. Paying off your mortgage faster or reducing debt before retirement can provide peace of mind and financial freedom.
A mortgage broker or registered financial adviser can help assess your options and identify the best loan for your circumstances. Additionally, reviewing your home loan at EOFY allows you to incorporate any potential tax benefits or deductions related to investment properties.
This article and any links provided are for general information only and should not be taken as constituting professional advice. National Seniors is not a financial advisor. You should consider seeking independent legal, financial, taxation or other advice to check how any information provided relates to your unique circumstances.
