Is your home loan still healthy? Here’s what Wollongong homeowners should check
As interest rates shift and the property market continues to evolve, your home loan isn’t something you should simply set and forget. Just like your lifestyle and financial goals, your mortgage needs can change over time.
If you haven’t reviewed your loan in a while, now could be a good time to check in. A home loan health check can help homeowners in Wollongong and across the Illawarra understand whether their current loan still suits their circumstances, or if there may be opportunities to improve it.
Here’s what a home loan review could uncover.
Why reviewing your home loan matters
What worked when you first bought your home may not be the best fit today. Reviewing your loan can give you clarity around where things stand now and whether your mortgage is still aligned with your goals.
1. More competitive interest rates
Lenders regularly adjust their rates and policies. Depending on market conditions and your equity position, you may now have access to a more competitive rate than when you first took out your loan. Over time, even small differences in rate can affect the total interest paid.
2. Lower monthly repayments
A change in interest rate or loan structure could reduce your repayments and free up cash flow. This may help with day-to-day expenses, savings, or future plans such as renovations or investing.
3. Loan features that better suit your lifestyle
Features like offset accounts, redraw facilities and flexible repayment options can play a big role in how effectively you manage your mortgage. The right features can help reduce interest while giving you more control over your finances.
4. A loan structure that fits your goals
As your circumstances change, your loan may need to evolve with you. Increased equity may allow you to restructure your loan more effectively, whether that’s accessing funds for renovations, supporting an investment strategy, or simply creating more flexibility.
5. Simplified finances through debt consolidation
If you’re managing multiple debts, such as credit cards or personal loans, consolidating them into your home loan may simplify repayments and reduce overall interest costs. This can help create a clearer financial picture.
6. An improved equity position
As property values rise and your loan balance reduces, your loan-to-value ratio may improve. A lower LVR can open up access to more competitive rates, reduce or remove lenders mortgage insurance, and expand refinancing options.
Small changes can make a meaningful difference
Even if your loan seems to be ticking along, regular reviews can highlight areas worth considering. Small adjustments, such as reviewing your interest rate or switching to fortnightly repayments, may have a positive impact over time.
Many homeowners stay with the same loan for years without checking whether it still suits them. A home loan health check helps you stay informed and ensures your mortgage continues to support your lifestyle and long-term plans.
Ready to review your home loan?
Your mortgage is one of your biggest financial commitments, and it deserves regular attention. As the market changes and your circumstances evolve, a review may help you understand what options are available to you.
If you’d like a home loan health check with a Wollongong mortgage broker, get in touch. We can help you assess whether your loan still aligns with your current needs and goals.