The Danger of ‘Set and Forget’ Approach to Your Loan(s)!
Many property owners and especially homeowners take a ‘set-and-forget’ approach to their mortgage. This approach can potentially cost you thousands, if not tens of thousands of dollars!
Because interest rate goes up and down; banks change their loan products and conditions from time to time; and your circumstances change over time as well. The mortgage you took 2 years ago may or may not suit your current needs anymore.
We recently received a call from a homeowner who is thinking of buying an investment property. When we asked him about his home loan, he had little idea of his loan balance, repayment amount, current interest rate etc.
And he hasn’t reviewed his mortgage for over 5 years!
Don’t judge! He’s not the only one. A lot of people don’t know or don’t want to know all the details about their loans.
Some people think it’s too much of a hassle, while some others just aren’t aware of how much money they can potentially save if they keep an eye on their mortgage.
Banks love these type of clients because they help the banks make more money.
Sadly, most mortgage brokers offer little help in this area because they make a majority of their income signing new loans, not proactively monitoring existing loans.
As a result, you could be overpaying by thousands.
Review Your Loan for Long Term Investment Success
Mortgage Corp’s philosophy is very different. We are totally focussed on client’s long term goals.
We regularly review your loans and get in touch with you. We don’t simply suggest you to refinance because there’s a cheaper interest rate available, as a cheaper rate doesn’t necessarily mean money saved in your bank. On the contrary, if you don’t understand the lending market, simply choosing the lowest rate sometimes could end up costing you a whole lot more.
Although regularly reviewing your loan is time-consuming and it doesn’t normally generate any revenue for us, it ensures our clients always have the most suitable loans best deal available. Our clients have rewarded us for taking this extra effort by remaining loyal and referring their friends and family. And frankly, we just think it’s the right thing to do.
Questions to Ask Yourself Before Considering Refinancing Your Mortgage
- Have you reviewed your mortgage in the last 6 months?
- Have your circumstances changed recently, eg: got a pay rise or expect to get a fair amount of money from your tax return?
- Do you need some extra money for anything, eg: a new car, holiday or home renovation?
- Are you paying too much interest on your credit card(s) or the couch you bought 2 years ago? (Did you know you could potentially reduce those interest rates by refinancing your home loan?)
If you think you need to review and more importantly RESTRUCTURE your loan for a better interest rate, conditions and Long Term Investment Success! Request a Free Restructuring Strategy Session!
Or if you are not sure and would like to have a quick chat, give us a call on 1300 138 943.
About Mortgage Corp
Based in Mount Waverley, Melbourne, Mortgage Corp specialises in helping successful professionals and property investors access discounted premium rates, minimise loan approval red tape and apply strategic loan structuring for long-term investment success.
Unlike many mortgage brokers that may be able to help you with general loans but simply don’t have the skills, experience or resources to genuinely help property investors maximise long-term wealth, Mortgage Corp loan specialists help investors develop a strategic approach to property investing for long term investment success. Request a Free Loan Structuring Strategy Session with our 5 Star Lending Specialist Neil Carstairs today!
About Neil Carstairs
Neil is the founder of Mortgage Corp, an active property investor and awarding winning MFAA accredited finance broker with more than 10 years’ mortgage broking experience. Currently, Neil is one of only 19 MFAA Certified Mentors in VIC/TAS region.
He is known for his strategic approach to investing and ability to reach fast, successful outcomes for clients where his industry peers could not. Connect with Neil on LinkedIn.