The days of the ‘set and forget’ home or investment loan are long gone and now more than ever, it’s up to us as consumers to stay vigilant when it comes to mortgage rates (or interest rates of any kind for that matter).
To demonstrate the difference a phone call to the right person can make, let me share this story with you:
A property investor was recently offered a complimentary Health Check by an independent mortgage broker on his investment loan for one of his properties. Certain his bank had been looking after him, he took up the offer “just to keep them honest”.
From that process he discovered that he could refinance to a much better rate saving him a considerable amount of money or allowing him to pay off his debt much faster. Impressed, he asked the broker to review the loans on all six of his properties, including his own home.
The end result was that this Queensland investor:
- Refinanced with another reputable finance institution,
- Purchased another investment property, and
- Is less out of pocket now than he had been previously, despite now owning seven properties rather than six.
Of course not everyone would choose to reinvest in another investment property, but speaking with your Property Manager about putting you in touch with a finance broker could save you a lot of money! How you spend it is up to you.