Spring has Sprung: Time for a Mortgage Check-up?

Break out your mop and vacuum, blow the dust off your counter-tops, and fling open the windows to let some fresh air spruce up your mortgage this September.

Keeping track of your finances is incredibly important. Even though life usually gets ahead of us, leaving some time aside to check-up on your finances is integral to maintaining financial health. Spring is the perfect time to get into the habit of reviewing your circumstances, as while you are in the mood to de-clutter your home, you can hit two birds with the one stone.

So get your cleaning supplies together, along with all necessary passwords, files and documents, and consider the checklist below for a total mortgage spring clean:

1.    Know your interest rates

Do you know what interest rate you are paying on your loan? Has the ‘honeymoon’ period passed on your interest rate special? Do you know the current deals on the market?

Knowing what interest rates are available on the market will help determine whether your current package suits your circumstances, or if refinancing is on the horizon. Check with your broker, look online or at your last statement to make sure your rate is something you are happy with. Interest rates are always changing, and that’s why it’s important to do your research and contact a broker who knows a good deal you can take advantage of.

2.    Consider opening an offset account

Are you aware of the benefits of an offset savings account? Do you know what they can offer you?

An offset savings account is an everyday transaction account linked directly to your home loan. While it allows customers to store cash, like in an everyday savings account, it can also shave years and thousands of dollars off your home loan. This is done by using the deposited amount to reduce the interest payable on your loan. The greatest feature about them? The offset is completely tax-free.

For example, if you had $410,000 remaining on your mortgage and the account holds $10,000, you would only need to pay interest on $400,000. Talk to your broker to determine whether you qualify.

3.    Debt consolidation

Have your debts gotten a little out of control, are split over multiple accounts, or are confusing to keep track off?

Spring is a good time to review all of your debts and previous loans, for example, credit card debt, utility bills, or other personal loans. By consolidating your debt into one manageable account, you can ease the stress of trying to manage debt coming from several outlets. It is a good idea to speak to a reliable broker to determine if this will benefit your situation.

5.    Update you budget

Have you experienced any significant changes in your circumstances that could affect your budget?

Major situation changes like marriage, divorce, buying an investment property and having a baby can require you to make changes to your everyday budget. This might mean you need to review all your bills, cancel Foxtel or Netflix, or look into reducing other expenditure to juggle your financial responsibilities.

Another change could include you or a partner receiving a pay-rise. Using the extra money to get in front of your mortgage repayments or setting a savings goal for a holiday or new car is something to factor in for the future.

Why settle to just de-clutter your home this Spring when we can help you clean up your finances?

At Select, we offer no-obligation, quality, and free advice to help you achieve your financial and personal goals. Call or visit us now to organise a meeting with one of our friendly brokers for a free mortgage check-up on (08) 9417 3399.