Is your home loan working as hard as you are?

A regular review of your home loan and how you manage it will help you identify some areas where you may be able to improve the efficiency of your loan. We’ve put together a list of the top 5 things to consider when reviewing your home loan.

1. Interest Rate

When was the last time you checked the interest rate on your home loan? Information on interest rates is readily available on most financial institutions websites or one of the many comparison sites like Ratecity or MOZO. See how your rate stacks up against what’s currently on offer. If your rate doesn’t compare, it’s time to look at your options.

2. Payment Flexibility

Does your loan offer flexibility on your repayments? One of the easiest ways to save money on your home loan is to pay half your monthly repayment amount every fortnight. You won’t notice much of a difference, but over the year you make a full extra monthly repayment. Ideally, you also want to pay a little extra each payment. This doesn’t need to be a lot – even as little as $25 extra each payment can make a big difference over the life of your loan. Find our how extra repayments could impact your loan with IMB's Extra Repayments Calculator.

3. Offset Account

If you have any savings it's worth considering an offset account. An offset account reduces the balance of your home loan for the purposes of calculating interest. So while you don’t earn interest on your savings, you do save on interest on your home loan.

• Fees. When looking at fees, it’s worth considering not only the fees on your home loan (if you have any) but also any fees you are paying for the rest of your banking such as transaction accounts and credit cards. You may find you are better off with a home loan package that provides all your banking requirements for one fee. These usually come packaged with a home loan offering a significant interest rate discount, so it’s worth investigating.
• Fixed vs Variable. Have you considered fixing all or part of your variable interest rate loan? With rates currently lower than they have been in a while, now is a great time to look at fixed rate options available. Fixed rate home loans often come with conditions, like limited extra repayments, so be sure to check out the fine print.

Need help finding the right home loan solution for you? Your local IMB Home Lending Specialist is available in branch and over the phone. Or if you would prefer a mobile lending specialists will come to you.

Book an appointment to speak with an IMB Bank Home Loan Specialist

^{This is general information only and it does not take into account your objectives, financial situation or needs.  You should consider if any advice is appropriate for your circumstances.  IMB lending criteria, terms and conditions, fees and charges apply to IMB lending products.}