According to Commonwealth Bank research, as we dive into 2024, three out of four Australians will make at least one financial resolution, often involving plans to follow a budget or spend less. But when it comes to New Year goals, it is worth shining a spotlight on your mortgage.
After all, it’s likely to be your largest debt, and setting (and achieving) a few goals for the year ahead can help you pocket savings and become mortgage-free sooner.
Here are our top 5 home loan resolutions for 2024.
1. Give your home loan a health check
Don’t just assume you still have the home loan that’s right for you. Chances are, life has dished up a few changes over the past few years. Or maybe there are big things on the horizon for 2024 – like starting a family, upgrading to your next home, or tackling a major renovation. Checking that your mortgage is still well-suited to your needs can be a starting point to achieve these goals.
Talk to us about a free home loan health check to be confident you are heading into 2024 with a loan that still ticks all the boxes for your situation.
2. Ditch lender loyalty
Interest rates soared in 2023, yet less than one in 10 homeowners refinanced their home loan to get a better deal last year, according to Canstar research.
At the start of 2024, we are still seeing big variations in rates between banks, with many lenders still offering lower rates to new customers, according to Reserve Bank of Australia (RBA) statistics.
So, staying loyal to a lender can cost you.
We can compare your mortgage to many others in the market to see how it shapes up in terms of rate, features and flexibility. That will help you decide whether to stay or save by switching to a new loan and/or lender.
3. Check you are not paying for features you don’t use
Home loan features can be very handy, but the more features a loan has, the higher the rate (or fees) may be. It is not a problem if you regularly use features such as an offset account to save money. However, if you are not using particular loan features, you could save with a more basic loan that potentially comes with a lower rate.
Not sure which features your loan offers? Call us for a quick rundown and we will help you check it all out.
4. Plan now for the end of a fixed rate
The fixed-rate cliff is not over yet. The RBA says 450,000 homeowners will roll off a super-low fixed rate in 2024. If that includes you, it could pay to act now.
We can help you plan ahead and decide the right course of action – be it reverting, refixing or refinancing – so that your finances won’t be too squeezed when the end of your fixed rate rolls around.
5. Leverage your home loan to achieve other property goals
A home loan doesn’t just have to be a debt. It can also be a valuable tool that lets you work through a personal bucket list by putting home equity to work. And you could be starting 2024 with a lot more equity than you realise.
Back in January 2023, the median home value across Australia’s state capitals was $770,374, according to CoreLogic. Fast forward to January 2024, and the median value has increased to $832,193. That might mean extra money (aka equity) up your sleeve to build wealth through an investment property, for example.
Call us to get a clearer picture of your home’s potential equity – and how you could use it to tick off your wish list in the year ahead.
Louisa Sanghera is a Finance Broker for Residential Mortgages, Vehicle and Asset Finance, Commercial Lending and Budgeting and Cashflow Coaching with Zippy Financial.
She has gained more than 30 years in the Banking and Finance Industry, and since founding Zippy Financial, has become a multi award nominated expert in the field of finance featuring regularly in industry press and speaking at finance and investment seminars across the country.
Phone: 1300 855 022
Email: [email protected]
Website: www.zippyfinancial.com.au
Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.
