As a mortgage broker, one of the most important aspects of our job is helping clients navigate the complex world of home loans and interest rates. One of the key services we offer is rate reviews, which we do every 12 months. Rate reviews help ensure that our clients are getting the best possible deal on their mortgage. Here’s what you need to know about rate reviews in Australia.
What is a rate review?
A rate review is an assessment of your current mortgage to determine if there are better interest rate options available. Your mortgage broker will assess your current loan and compare it to other options available on the market, including those offered by other lenders. This review can help identify potential savings and may result in refinancing to a better rate or renegotiating the rate with your current lender.
Why is a rate review important?
Over time, interest rates and loan terms can change, and new lenders may enter the market with competitive rates. A rate review can help ensure that you are aware of these changes and can take advantage of them to potentially save money on your mortgage.
A rate review can also help ensure that your loan is still suitable for your individual circumstances. For example, if your income or employment status has changed since you took out your loan, your mortgage broker can assess whether a different loan product may be more appropriate.
How often should you review your interest rate?
There is no hard and fast rule for how often you should review your interest rate, but as a general rule of thumb, it’s a good idea to review your loan annually. This allows you to stay on top of changes in the market and ensure that you are getting the best possible deal on your mortgage.
What should you consider during a rate review?
During a rate review, your mortgage broker will assess a range of factors to determine if there are better rate options available, including:
- Your current interest rate and loan terms
- Your current loan balance and repayment amount
- Your credit score and borrowing history
- Your income and employment status
- Changes in the market and interest rates
- Other fees and charges associated with your loan
Based on this assessment, your mortgage broker will provide you with options and recommendations for potentially better rates or loan products.
In conclusion, rate reviews are an important part of managing your mortgage and ensuring that you are getting the best possible deal. As a mortgage broker, we work closely with our clients to review their loans on a regular basis and identify potential savings. If you’re interested in a rate review or would like to discuss your mortgage options, contact us today to see how we can help.