- In Bee Savvy - Getting the most out of your loan, Getting ahead - How to improve your finances, Home sweet home - first home owner finance
Interest rate changes on home loans are a constant topic for discussion. Many people make interest rates a priority when choosing a home loan. The media often offers advice on switching lenders, or looking for better deals.
But many people remain confused.
So when should I review my interest rate?
Bee Finance Savvy recommends that you review your the interest rate on your home loan every few years. This is for a number of reasons.
Firstly, lender policies are constantly changing. The policies in place when you got your mortgage a few years ago may now have changed. This means that new deals or specials could be available to you now.
Secondly, after several years of paying off your mortgage, you’ll have more equity in your home. How does this change things? More equity can mean that better rates are available to you. This is especially true if you bought your home at a high loan to value ratio (i.e. a small deposit).
Finally, a lot can change in a few years. Perhaps you received a promotion at work. Or maybe you moved to a better, higher paying job. Your stay at home spouse may have returned to work. An older child may have moved out and is no longer a dependent.
All these factors mean that you should be able to re-evaluate your mortgage rate every few years.
Shouldn’t I just get a mortgage with a great rate to start with?
In a perfect world, everyone would be able to get a mortgage with a great rate from the start. Unfortunately, that isn’t always possible. And not just
because great rates aren’t always available.
Great rates may be available, that doesn’t mean the lenders offering them will approve you.
If your circumstances and finances are less than perfect, you may not be able to pick a lender with a great rate. While Bee Finance Savvy always works to get customers a good interest rate, we also want make sure their application are actually approved.
Sometimes this means we’ll apply to a lender with a higher rate, because they’ll approve your application, while a lender with a lower rate, won’t approve you.
Does this mean my loan will always have a high rate?
Many people worry that if they have to go with a lender with a higher rate, so that they’ll be approved, they’ll be stuck with that high rate. But this isn’t the case. As explained above, there are many reasons why you should review your mortgage rate every few years.
After Bee Finance Savvy has worked with you to get you initially approved for a home loan, we can then later work with you to get a better rate.
So whether you already have a home loan, or if you want to apply for one, Bee Finance Savvy can work with you for the life of the loan, to ensure you have the optimal mortgage for your circumstances.
If you want a home loan health check, or you want to buy a property, call Desiree at Sutherland Shire’s Bee Finance Savvy on 1300 140 554 or 0455 131 937. You can also email Desiree at firstname.lastname@example.org
Why choose Bee Finance Savvy?
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