You can review your own mortgage or have a mortgage adviser help you to ensure that you are getting the best mortgage rate, have the most suitable loan structures and ultimately be able to save on your mortgage.
Why You Should Have An Adviser Helping
There is a saying; “you don’t know what you don’t know” and often with finances people think there bank has offered them good advise and the best mortgage rate but it is not until they get a second opinion that they discover that this was not the case.
A banker is employed by the bank so their loyalty is firstly to their employer.
Bank staff are often limited in knowledge too. They may know their own banks products extremely well but it is rear to get someone at the bank who knows much about the other banks products and be up to date with what they are offering.
Tune Up Your Home Loan
You will take your car in for a regular tune-up and this ensures that it continues to do what it is meant to do in the most efficient manner. The mechanic will take a look at the car and test various things making changes as required.
We know that regular service will make our cars go better.
When a mortgage adviser takes a look at your loans they will be doing something similar; albeit without getting covered in grease.
A mortgage adviser will check your loans to make sure they are as efficient as possible and that will include making sure that your loans are structured to suit your budget, that you have the ability to pay them off faster and of course to ensure that you are getting the best mortgage rate.
A mortgage or financial review should also look at any other debts, your investments (your Kiwisaver, any savings, managed funds and of course property investments) and insurances to ensure they are working for you too.
Should You Consolidate Other Debt?
If you have other more expensive debt or have acted as a guarantor to someone then these should be high priorities to review.
Some debt is expensive and really if you have any debt that is at a higher interest rate than what your home loan is then you should review those debts and look at the pro’s and con’s of consolidating your debts into your mortgage.
Most of the time it makes common sense to consolidate more expensive debts into the lower cost mortgage; however you need to consider things carefully and this is an area where a good mortgage adviser can really help. They can explain the implications of any debt consolidation and also explain the best way to structure these loans.
Getting The Best Mortgage Rate
Of course getting the best mortgage rate is an important part of any mortgage review.
The banks make it quite difficult as the have there ‘standard interest rates’ and ‘specials’ which they advertise, but mortgage brokers know that getting the best mortgage rate from the bank generally results in lower mortgage rates than those.
