Does your home loan still suit you?
The home loan that suited you when you first purchased your property may not necessarily be the right fit today.
Your income may have changed, your property may have increased in value and your loan balance may be lower. At the same time, lenders’ products, policies and loan features may also have changed.
A home loan health check can help you review:
- Your current interest rate and fees
- Whether your loan features still suit the way you manage your money
- Any fixed-rate period approaching its end
- Changes to your income, circumstances or financial goals
- Other loan options that may now be available
Refinancing is not automatically the answer. Switching loans can involve fees, valuations and changes to features or loan conditions.
A review is simply about understanding whether a different option could provide a genuine benefit, or confirming that your current loan is still doing its job.
Wondering how your home loan measures up? Talk to our team.
Your credit card balance is $0, but what about the limit?
Paying your credit card balance in full each month is a great habit. However, when you apply for a home loan, lenders may consider more than the amount you currently owe.
They generally look at the total credit limit available to you. This means a card with a $15,000 limit may be treated as a potential financial commitment, even if its balance is $0.
Lenders may also consider:
- Credit cards you rarely use
- Store cards you may have forgotten about
- Buy now, pay later accounts
- Other credit facilities kept “just in case”
This does not mean you should immediately close every account. However, reducing unnecessary limits or closing unused facilities may improve your borrowing position in some circumstances.
Before making changes, speak with a mortgage broker. The way credit facilities are assessed varies between lenders, and closing an account may not automatically produce the result you expect.
Planning to apply for a home loan? Let’s look at the complete picture first.
Speak with our team early so we can help you explore your options.
