What Is A Home Loan Health Check?

When was the last time you checked in on your home loan? At Bendigo Bank, we’ve streamlined the process by offering our free Home Loan Health Check service to anyone, even if they don’t bank with us. Here’s what’s involved and how you can benefit.

What’s involved in a Home Loan Health Check?

“It’s really easy to just ‘set and forget’ when it comes to long term financing such as a home loan – it’s not generally an area most people give much thought to”, explains Bendigo Bank’s Jane Partington, Mobile Relationship Manager (Newcastle region).

A Bendigo Bank Home Loan Health Check starts with a review of your current interest rate, loan structure, home value, repayment options and remaining loan term.

We’ll also ask you about your goals and aspirations and any short or long term plans you have for your lifestyle. From here we’ll explore options that are available to you in your circumstances. Every borrower has different needs, goals and aspirations, so a loan that’s suitable for one person won’t always be suitable for another.

Why do I need a Home Loan Health Check?

Keeping the same home loan for a long period of time can mean you miss out on more favourable loan options and interest rates. Plus, as your circumstances change, you may be able to benefit from new features, repayments, or interest rates, and better align your home loan to your life plans. You may even be able to unlock equity in your home to finance a renovation, dream trip or to purchase another property.

Get a lower interest rate

Jane carries out Home Loan Health Checks regularly, and often saves her customers hundreds or thousands of dollars in interest. “Interest rates are typically determined by the loan amount as compared to the value of the property,” she explains. A lower loan to value ratio (LVR) can sometimes allow you to secure a lower interest rate.

“When a customer has had their home loan in place for a while, their LVR may have reduced over time as a result of an increase to their property value and a decrease to their outstanding loan balance,” Jane continues.

Access more suitable features

Older home loan products may not have the features that best suit your current financial situation. Jane explains how she assisted a customer who had a traditional loan product that didn’t offer an offset account.

Having paid off a substantial amount of the loan, they were missing out on the opportunity to lower their interest repayments. “By restructuring their loan product and linking a 100% offset account, the customer reduced their interest charges substantially.”

How often should you review your home loan?

Jane recommends customers check in with their home loan annually. If it’s been some time for you, it could be worth exploring your options. Other signs that it’s time to review your home loan suitability include:

• Your interest rate is higher than advertised rates for new customers (or you don’t know your rate at all!)
• You don’t have access to features like an offset account
• Your circumstances have changed since you took out your home loan, e.g. income changes or life goals
• Your fixed rate has ended (or is ending soon)
• You were previously on a special offer ‘honeymoon’ rate which has now reverted to a higher rate
• Your home value has increased

Realise your goals sooner with a Home Loan Health Check

Neglecting to review your home loan regularly can mean missing out on big opportunities, like accessing equity in your property or making significant savings on your interest repayments. If you’ve got goals you’re working towards, a free Home Loan Health Check with Bendigo Bank could unlock opportunities and get you there faster.

Find out more about Bendigo Bank’s free Home Loan Health Check service.

Any advice provided in this article is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable product disclosure statement(s) on our website before acquiring any product.

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