Life changes (so too should your loan)

If there’s one thing the pandemic induced craziness of 2020 taught us, it’s that nothing is certain. In recent months we’ve seen job security waver, income levels change and house prices skyrocket … and that’s just the tip of the iceberg. All of these things affect how people are able to service their mortgage differently. Fortunately, most lenders know this and have fronted up with a variety of ways to support those dealing with unexpected financial change. Only by looking hard at all the options out there (with the help of your financial adviser of course) can you be certain that you have the most valuable home loan set up for your current situation. And in these changing times it’s something you may have to reevaluate every few months

Even if Covid has left your finances unscathed, chances are there’s been a considerable change in your circumstances since you first took on your home loan. While you might not have been in a position to make extra repayments when you took out the loan you could be now. A few extra repayments could knock years of your mortgage – so it’s definitely worth exploring!

Complacency costs

Competition amongst all the banks is hotter than ever right now. Every week we’re seeing new low rates brought to the table, and what’s on offer from each lender can change in what seems like the blink of an eyelid. With this in mind you need to make sure you’ve got a truly competitive loan that’s right for you needs. It might not seem like much, but even just paying a quarter of a percent more than necessary can add up to tens of thousands in wasted interest payments over the life of your loan.

Equity equals opportunity

The equity you have in your home is a remarkably valuable asset. You could leverage it to help fund renovations, a new car or even an investment property. The secret to making the most of your equity is to know exactly how much you have up your sleeve – and that means reviewing your loan at least every 12 months.

The great news is that reviewing your mortgage doesn’t have to cost you a thing. Simply get in touch with your Prosper adviser and we’ll let you know if you’ve got the right loan for you – or give you some other more suitable options to consider.