With mortgage rates rising and inflation putting pressure on household budgets, now may be a good time to consider a mortgage review. Of course, we can’t tell you where mortgage rates are headed next (no one can), but we can help you check that your home loan structure is still aligned with your needs and goals.

So, here are three things to consider when reviewing your mortgage (ideally once a year).

What are your life goals?

As your life changes, so will the goals you set along the way. What are you looking forward to at the moment? Any new plans that require your undivided attention?

For example, here are some life goals that are likely to affect your mortgage needs:

• Starting a family and maybe transitioning from two incomes to one;
• Renovating your home;
• Buying a rental property;
• Buying a holiday home;
• Downsizing to a smaller property, and more…

Getting mortgage-free as soon as possible is another key goal to have. This would allow you to reduce your overall interest costs, build equity faster, and strengthen your financial position as it will free up income for other goals.

Whatever your life goals are, get in touch: we can discuss where your mortgage fits in that picture.

When is your fixed-term rate due to expire?

Is your fixed-rate mortgage term coming to an end? Make sure you check the expiry date.

Knowing when your fixed-term rate is due to roll over will help you plan your financial life accordingly. For example, if you’re looking at selling your home or making a lump-sum extra repayment, you may want to wait until the fixed-term rate expires as the floating rate gives you more flexibility.

The end of a fixed-rate period can also be a reminder to reassess your financial needs. Whether or not to refix, and for how long, entirely depends on your goals.

Can you pay more than the minimum?

If you can afford to pay more than the minimum repayment amount, it may be a good idea to do so. Just keep in mind that, if you’re on a fixed-term rate, you can usually only make extra payments up to a certain limit: get in touch to check what your lender allows.

Even a small extra amount can reduce the length of your mortgage. So, if everything is affordable for you at the moment, and you have extra funds available to pay off debt quicker, increasing your payments to bring down your balance is worth considering. Come time to refix, that’s the amount on which interest will be calculated. 

Book in your mortgage review today

A mortgage ‘health check’ gives you a great opportunity to ask us any questions you may have – so please don’t hesitate to contact us.

We’ll take a good look at your financial situation, where you’re at and what has changed since your last mortgage review. And we’ll work with you to ensure that your mortgage structure is in perfect alignment with your plans. We’re just a phone call away and here to help.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.