Four Reasons Your Clients Need Their Loans Reviewed
It can be easy to set and forget a home loan, however, there are some real benefits for your clients if they have their loans reviewed annually. Assisting your clients with the review will add value to your service and potentially save your clients thousands. Lend Perspective, a boutique mortgage broker business based in Double Bay says there are 4 key reasons annual debt reviews are in your clients’ best interest:
1. Reduce the interest rate
Yes. Loyalty Tax is a real thing!
Lenders often release special offers and discounted interest rates. However, these deals are only reserved for new customers and generally do not pass on to existing “Loyal” customers. Comparing your clients’ current rates to other lenders in the market and negotiating with their current lender, or move their business elsewhere, could save your clients thousands of dollars over the term of their home loan.
In the process your clients may also be able to reduce their repayments, giving them more disposable income, or they could put this extra cash to good use and pay off their home loan much quicker.
2. An opportunity to consolidate debts
If a client refinances their mortgage, it is a great opportunity to overhaul their finances and get any outstanding debt under control. They could consider combining some of their personal debts (such as credit cards and personal loans) with their mortgage, benefitting from a lower interest rate. This could minimise the amount of interest they pay, reduce loan repayments, and simplify their budget.
3. Tap into the property’s increased value
Over the past 12 months we have seen a steep rise in property values, and this may present an opportunity for your clients to use the increased value to their benefit. Most lenders will allow clients to access available equity for a range of purposes.
This will come in handy if your clients have been waiting for the opportune moment to buy an investment property, start an investment share portfolio, buy a new car, renovate their home, or go on holiday.
4. Ensure the loan structure is appropriate to your clients’ financial needs
If it has been a while since your clients last reviewed their home loan, their financial situation may have changed…and so should their loan structure. Considering features such as Interest Only loans, 100% offset accounts, Fixed Rate Loans, Line of Credit Facilities, Credit Card Sweep, Professional Packages could be of huge benefit to your clients, allowing them to reduce the cost of their mortgage, maximise tax efficiency, simplify their budgeting and assisting them to pay their home off much sooner than they’d expected!
Where to from here? Contact QPP to find out how we can provide a complimentary debt review for your clients.