When it comes to getting a mortgage, many home buyers choose to work with a mortgage adviser rather than going direct to the bank. That’s because there are several benefits to working with a mortgage adviser. But it’s just not in the home buying process that mortgage advisers offer knowledgeable guidance and advice: even when you already have a home loan, there are instances where it’s worthwhile using a mortgage adviser.
Structuring your home loan
Loan structure is an important consideration for homeowners who want to save money and pay off their mortgage faster. That’s because structuring a home loan correctly could potentially save thousands of dollars and shave years off mortgage repayments.
The ideal home loan structure will fit both your financial and personal circumstances and is likely to change over time. Working with a mortgage adviser can help you determine the right loan structure to fit your situation, both now and into the future.
A mortgage adviser can also explain the types of loans available to you and the differences between fixed and floating interest rates, and how the right combination of these could save you money.
When deciding on your home loan structure, here are some questions to ask yourself:
- Can I comfortably afford to pay more than the minimum repayments?
- Do I ever receive lump sum or bonus payments that could be paid into my mortgage?
- Am I likely to sell my home in the next 3, 4 or 5 years?
- How disciplined am I when it comes to saving money rather than spending?
- And how risk averse am I? Would I be comfortable with a floating interest rate that could change from month to month?
The answers to these questions will help you and your mortgage adviser determine the best loan structure for your needs.
Fixed interest rate term ending
When your home loan fixed interest rate term is nearing the end, it’s worthwhile getting in touch with your mortgage adviser to discuss how you’d like to proceed. Together with your mortgage adviser, you’ll consider what may be coming up for you in the next few years and then decide if it’s best to refix your mortgage or move to a floating interest rate instead.
Perhaps your income is going to increase allowing you to make extra mortgage repayments to pay down your mortgage faster. Or you may be considering growing your family and will need to fix your mortgage repayments for some time while on a single income. Your mortgage adviser will help you navigate how best to structure your home loan to fit each of these situations.
Buying an investment property or new home
Most people’s financial and personal situations change over time and so too do their home loan needs. If you’re in the market to buy another property or a new home – either upsizing or downsizing - your mortgage adviser can help you find the best home loan solution to fit your changing needs.
Sometimes you may need help from your mortgage adviser to top up your home loan – for example, if you’re planning home renovations or you need to consolidate your debt into your home loan to pay it off quicker. Either way, your mortgage adviser can help you understand the implications of making any changes to your mortgage and help manage the process for you too.
Talk to an expert
When it comes to helping our clients with their home loan and investment property needs, Mortgage Express branded mortgage advisers are knowledgeable and experienced. Working with you, mortgage advisers can assist you to find the right home loan structure to fit your lifestyle, discuss your needs in terms of topping up or getting a new mortgage, and even help you find ways to save on your mortgage and get mortgage-free sooner. Get in touch with Mortgage Express today to find a mortgage adviser in your area.