How Do You Know It’s Time to Update Your Home Loan?
Any major life event change should prompt you to reassess your home loan needs. Of course, this decision isn’t entirely up to you. You need to consult your preferred home loan broker (or home brokers) so they can give you their professional opinion on what your next move should be.
Depending on your financial status and your current interest rates (and the length of term), switching to a loan with a fixed rate may be the better option than staying variable. So how do you do that exactly? The first step is to get in touch with your mortgage broker if your current status allows you to make this move.
Some lenders can adjust your interest rates over the phone, while some require that you come in personally to their office. Decide depending on your comfort levels.
Splitting the mortgage into several accounts is also an option. What does this mean? This means keeping one part on fixed interest and the other parts on variable (and vice versa). You may be required to fill out some forms if you wish only to adjust certain parts of your loan.
Note that you will have to pay a processing fee when fixing or splitting your home loan.
What if You’re Experiencing Financial Difficulty?
The best way to make your home loan repayments on time is by talking to your bank. You can ask for a short-term repayment holiday so you can have more time to sort your financial issues out. You can also try asking about hardship programs that would temporarily charge interest only on your loan.
To lower the fees, even more, consider talking to an independent mortgage broker like What If We Finance. We can help you find the most fitting solution to your repayment difficulties. Just get in touch with us for any enquiries.