Financial Health Check

CONNOR SUMMERS ~ LOAN MARKET

With the cash rate increasing by 4 percentage points since the start of 2022, many households have felt the pinch of rising interest rates Lenders often offer lower interest rates to new customers, so regularly checking the competitiveness of your loan compared to others in the market could help prevent you from paying more than you need to

Some reasons you may be able to get a better interest rate include:

1 You’ve been meeting or exceeding your repayments

Not only does this show the lender you are a reliable borrower, but if you are paying principal and interest, it will also bring your LVR down (the ratio of how much of your home you own vs the loan) A lower LVR could get you a more competitive rate

2 You’ve paid off other credit.

If you previously had a credit card, other loans or a HELP debt that you have since paid down or got rid of, the lender could view you as less risky

3 You’ve had a pay rise or gained full-time employment. If your employment has changed to be more permanent or you have received a pay rise, you could look more favourable to a lender

4 You find a lower interest rate with another lender This could provide better footing to negotiate with your current lender, or you could consider refinancing to the other lender There may be costs involved in refinancing, so be sure to ask your broker to run the numbers for you to determine if this is in your best interest

The expert team at Loan Market regularly reviews our clients’ loans They do the legwork to negotiate with their existing lender, or move them to one that better suits their needs Scan the QR Code to book online an obligation free chat today 0416 838 673 connor summers@loanmarket com au