Your personal finances are no different to your home, garden or garage – sometimes a spring clean is in order. It might not scream fun, but spring cleaning your finances is quicker and easier than you might think and it could save you.
Here are nine tips to add to your spring cleaning list.
Ask your broker how your current loan’s interest rate compares against the rates being offered by various lenders. This will allow you to see whether you’re paying too much in terms of interest, plus it can give you the bargaining power you need should you wish to switch lenders.
There are many fees that come with home loans including annual fees, application costs, redraw costs etc. Ask your broker about these and look at the comparison rate to ensure you’re getting the best option for you.
If you are struggling with a range of debt repayments, merging all your debts into your mortgage could help you lower your monthly repayments and gain some peace of mind by converting unsecured debt into secured. However, you should also take into consideration that you’ll accrue more interest this way, and these debts will be stretched out over a longer period.
For homeowners, putting your additional savings in a savings offset account may save you years off your loan and still give you immediate access to your savings.
Often your circumstances change and your home loan is not reviewed with this change, so it’s worth speaking to your broker to check that your loan is still appropriate and best suits your needs.
Checking your statements
Don’t just file away your monthly statement, take a glance over it each month to make sure there is nothing unusual, such as extra fees or charges that have been allocated incorrectly.
Borrowers who give their home loan a spring clean may realise that they are in the perfect position to refinance their mortgage. Refinancing may allow borrowers to take advantage of a better interest rate, to secure a longer payment term or access a feature that your current loan doesn’t provide.
Consider paying your income tax return or any other ‘windfall’ off your home loan, so that you significantly save on interest costs and own your home sooner.
Protect your mortgage
If you haven’t yet come up with a plan to protect your ability to make your mortgage repayments in the event of a serious illness/injury or even, death – it’s time to. Get covered with our mortgage protection plan that provides financial support across 11 serious medical conditions, death/terminal illness and involuntary unemployment.
For more information about ALI Group’s Loan Protection Plan, please speak to your closest authorised mortgage broker or if you’re ready to get a quote, please get in touch now.
Loan Protection Plan is jointly issued by Hannover Life Re of Australasia Ltd ABN 37 062 395 484 (Death, Terminal Illness, Living and Accidental Injury Benefits) and QBE Insurance (Australia) Limited ABN 78 003 191 035 AFSL 239545 (Involuntary Unemployment Benefit). It is distributed by Australian Life Insurance Distribution Pty Ltd ABN 31 103 157 811 AFSG 226403 (ALI). ALI receives commission for each policy sold. Any advice provided is of a general nature only and does not take into consideration your personal objectives, financial situation or needs. You should consider the Product Disclosure Statement when deciding if this product is appropriate for you.