Don’t be complacent!

The home loan market changes constantly; new lenders and new products are regularly introduced while old lenders and old types of loans frequently become superseded.

They rarely apply these better loan features or discounts to their existing home loans. Lenders regularly introduce cheaper versions of an existing loan or a new discount package to attract new borrowers.

You should review your home loan at these key points:

• At least every 2 years.
• Whenever you come out of a fixed or introductory rate.
• Whenever you believe an employment or income change is on the horizon.
• When you are planning to have children.
• When you are planning any major purchases.
• When you are accumulating other debts, such as credit cards.

In my experience, the biggest financial problem people have is complacency. It all seems a bit too complicated, and it’s much easier to just stick with your current loan. However, all the while, you are wasting money that you could be using to build your financial future.

Personally, I think an hour spent collecting a few papers and signing some forms is a small price to pay to save thousands of dollars (compare that to your hourly rate at work).

It can be simple to future proof your loan, especially when using a Mortgage Broker, because:

• $ When you get your first loan, your Mortgage Broker keeps all of your details securely on file.
• $ Your Mortgage Broker contacts you when a new loan product they have already determined will genuinely save you a substantial amount of money is introduced, taking into account any exit and new setup costs.
• $ Your Mortgage Broker already has your details, to get you started with these better options, he only requires an update of your details, some recent payslips, and loan statements.
• $ Your Mortgage Broker can then create a prefilled application form ready for your signature.
• $ Working with a broker takes all the time consuming work out of it for you.

Switching out of your current loan and taking out a loan at a lower rate can mean a difference measured in years and thousands of dollars. If you have a loan that is tricked up with all the features, or even if you have a standard variable loan, you might find that you could get a no frills rate that is as much as a percentage point cheaper than your current loan.