Why It’s Important To Review Your Existing Loans

When it comes to your finances it's easy to set up a home loan and then forget about it but the truth is your financial situation and goals can change over time. That's why it's a good idea to regularly review your existing loans to make sure your lending is structured correctly and you're on track to pay off your home loan as quickly as possible.

Why Do a Loan Review? 

There are a few key benefits to conducting an annual review of your loans:

1.     Ensuring the Loan Still Meets Your Needs

Has there been any change to your financial position since your last review or home loan draw down? Overtime, your income, expenses, and financial priorities can change.  A loan review allows you to confirm that your current loan structure still aligns with your situation and goals. This could involve looking at factors like interest rates, repayment timelines, and flexibility to make extra payments.

2.     Find Ways to Pay Off the Loan Faster

By closely examining the details of your loan, we may discover opportunities to pay it off more quickly and save on interest costs. This might mean exploring options to refinance at a lower rate taking advantage of incentives like cashbacks, or making additional payments when possible.

3.      Adjusting the Loan as Your Life Changes 

Do you expect any changes to your financial position in the next 12 months? For example, having children, moving house, becoming self-employed, getting an inheritance. These types of major life events can impact your financial picture. A loan review ensures your lending is adjusted to accommodate these changes, whether that's increasing monthly payments or modifying the loan term.

4.      The Loan Review Process 

At Future Mortgages, we offer a free loan review service to help our customers get the most out of their lending. We'll take a close look at your current loan, understand any changes in your personal or financial situation over the past year, and provide recommendations on how to optimise your loan structure.

This includes analysing details like:

- Current interest rates (fixed vs. variable)

- Time remaining on the loan

- Your ability to make additional payments

- Do you have any savings in any of your bank accounts (not just the bank that your home loan is with). This can be used to offset the interest payments on your mortgage if structured correctly.

- Any shifts in your income, have you taken on any short term debts, or other financial factors

- Have you made any upgrades to your property or do you think the value may have substantially increased? 

Based on this analysis, we can suggest ways to help you pay your loan off faster and achieve your future financial goals.

The Value of Regular Check-Ins

Ultimately, regularly reviewing your loans - even if your situation hasn't changed dramatically is an important financial practice. It helps ensure your lending remains well suited to meet your needs both now and in the future.

We encourage you to take advantage of our free loan review service. It's a great way to gain clarity on your lending and explore opportunities to improve your financial position. Contact us today to get started!

‍