Trying out one or all of them could potentially help you save a significant amount in the upcoming year.
It’s that time of year when Australians are fond of setting resolutions. According to Commonwealth Bank research, as we step into 2024, approximately three out of four Australians will make at least one financial resolution, often related to budgeting or spending less. However, when it comes to setting New Year goals, it’s important to give some thought to your mortgage. Given that it’s likely to be your largest debt, establishing and achieving a few objectives for the year ahead could enable you to save money and become mortgage-free sooner.
Here are the top 5 home loan resolutions for 2024:
1. Evaluate Your Home Loan’s Health
- Don’t just assume that you still have the right home loan for your current situation. Life circumstances change, and big events might be on the horizon for 2024. It’s crucial to ensure that your mortgage still meets your needs so that you can pursue your goals effectively. Consider a free home loan health check to ensure that your loan aligns with your current situation.
2. Consider Refinancing
- Despite the surge in interest rates in 2023, only a small fraction of homeowners took advantage of the opportunity to refinance for a better deal. As interest rates continue to vary widely between banks, staying loyal to a single lender could end up costing you. We can compare your mortgage with others available in the market, helping you decide whether to stick with your current loan or save by switching to a new one.
3. Assess Your Loan Features
- While home loan features can be beneficial, they might also result in a higher rate or fees. If you’re not utilizing certain features, you could potentially save by opting for a more basic loan with a lower rate. Reach out to us to understand the features your loan offers, and we can help you assess whether they align with your needs.
4. Prepare for the End of a Fixed Rate
- According to the Reserve Bank of Australia, a significant number of homeowners will roll off a super-low fixed rate in 2024. If this includes you, it would be prudent to plan ahead and determine the best course of action, such as reverting, refixing, or refinancing, to ensure that your finances aren’t strained when your fixed rate term ends.
5. Explore Leveraging Your Home Loan for Other Property Goals
- Your home loan doesn’t have to be just a debt; it can also be a valuable tool for working towards personal goals. With the rise in property values, you might have accrued additional equity that could be utilised for wealth-building, such as through an investment property. Contact me to gain a clearer understanding of your home’s potential equity and how you could leverage it to accomplish your goals in the upcoming year.
