Mortgage check: Are you on top of things?


Settled into your dream home? Congratulations!

Owning a home is one of life’s milestones, a commitment that will be with you for the long haul, and importantly, a key ingredient of your financial life. And that’s why it’s essential to stay on top of it as you go.

So, if it’s been a while since your last mortgage review, here are some key things to keep in mind.

It’s the core of your financial life

Did you know that your mortgage interacts with everything else in your life? Think of it as something that’s interconnected with all your financial decisions – like, how much you can spend, people and assets you’d like to protect, what you can save in the long run, when you can get to the retirement of your dreams, and more.

Your mortgage is the central piece of your financial picture – one that has implications on both the short term (how the repayment amount fits into your monthly budget) and the long term (the overall interest you’ll be paying on the mortgage over time, and what that means for your retirement goals).

With this in mind, having a mortgage is not just about going with the flow, but about accelerating the journey to a mortgage-free life, and to your other goals.

Reviews help you stay on track 

Are you headed in the right direction to your goals? When it comes to your mortgage, a regular review can help you visualise where you’re at on the road to your financial goals, as well as check for any timely, practical steps you can take to make sure you’re paying off your mortgage as affordably and efficiently as possible.

Plus, a regular review acts as a reminder of where you stand in terms of:

  • Long-term savings for you and your family
  • When your fixed term is ending (and if you’d like to refix)
  • Your repayment plan and if you’d like to update it
  • Your overall mortgage structure.

When is it time for a review?

Has it been a while since you reviewed your mortgage? As we said, it’s key to have a think about your mortgage on a regular basis, ideally at least once a year. Also, certain events or scenarios may trigger the need to review your mortgage.

For example:

  • Has your pocket received a bit extra – be it a bonus or a pay rise? You may want to consider channelling this extra money into your mortgage repayments, to pay off your loan faster and reduce the overall interest cost.
  • Is your fixed-rate term coming to an end? It can be an opportunity to plan your next steps and assess if your mortgage structure is still aligned with your needs.
  • Are you planning a renovation? If you’re considering using the equity in your home to fund your renovation project, a mortgage check can be helpful to determine where you’re at.
  • Would you like to consolidate your debt? ‘Debt consolidation’ means taking some or all of your different loans and putting them into a new loan with better terms.  If planned carefully, this move may help you pay off your debt faster. The key thing is to ensure you pay off the consolidated portion of your debt in a much shorter timeframe than the full length of your mortgage. In other words, you’ll be utilising the low interest rate of your mortgage to save interest and pay off your other debt a lot quicker than you likely otherwise would have. This way, you can simplify your repayment structure, save money and even free up borrowing power for other projects or goals.

Like a mortgage health check?

Get in touch today: as mortgage advisers, we are here to help you throughout your homeownership journey, whether before or during. So, if you have any questions about your mortgage structure or repayment plan, or should you just like to book a review with us – get in touch today.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.