Is it time to take a fresh look at your home loan?
If you’ve been dropping in to browse through these regular posts, you’ll be aware that we are big believers in the importance of doing your own research before locking in any plans to buy or sell in the current property market.
You may also be aware that IN OUR POST LAST MONTH, we pointed out that the traditional holiday season is an ideal time to think about our plans for the year ahead.
What is really surprising, however, is that far too many people are overlooking a key aspect of that planning process, a review of their mortgage loan. In our opinion, reviewing your home loan should be something you do every few years, even if you’re not planning on making a move, and should definitely be a key element of you plan if you are considering buying, selling or both. Even if you are happy with your current lender, don’t assume that your existing loan terms are the best deal you’ll get for your next home.
The Australian Bureau of Statistics revealed this week that a record number of Australian owner occupiers refinanced their mortgages in November 2022, with more than $13.4 billion in home loans being transferred in that one month alone.
That’s a monthly increase of more than 9 per cent, with an increasing number of borrowers looking to lock in their interest rates while the Reserve Bank attempts to reduce inflation. This figure is particularly interesting given that at the same time, the number of new loans to owner occupiers fell by 5.5 per cent.
One question that’s worth asking when we see numbers like these is “why aren’t more homeowners taking this step?” If you are planning on making a move in 2023, one of the first calls you should be making is to an independent mortgage broker to discuss what loan might best suit your specific needs in making that move.
Similarly, if you’ve been in your current home for any longer than one year, the chances are that last year’s string of interest rate rises have made your current loan less competitive. So why not give your mortgage broker a call if you used one last time, (or source one if you didn’t), and start asking those questions. There are 13.4 billion reasons to suggest it could be a financially productive thing to do!
Of course, if you are weighing up your options and would like an obligation-free chat about the property market in the City of Hume, whether in relation to your current home or your next one, the team at Barry Plant Gladstone Park are always happy to assist, so give us a call this week on 9330 1088.
Best wishes,
Nick Pugliese - Sales Manager
and Bill Karp - Director
Barry Plant Real Estate
Gladstone Park