With a fresh year ahead and plenty of potential changes on the horizon, now’s as good a time as any to check if your Highlands mortgage is still the right fit.
Interest rates seem to be always shifting, and we won’t lie… it’s easy to get swept up in all that talk of hikes and drops.
But when it comes to your mortgage, there’s actually quite a bit more to consider, like whether it still aligns with your life and financial goals.
To help us navigate it all, we had a chat with friendly local Adrian Feltham, owner of Smart Mortgage Services.
With over 35 years of experience helping Aussies navigate their mortgages, Adrian shares what to watch for, especially with changes on the horizon.
1 :: The Impact Of Interest Rates
Interest rates are always a HOT topic of conversation, and with the chance of a rate drop in 2025, it’s a great time to think about how your mortgage is stacking up.
Even a small drop in rates could mean big savings over time.
However, as Adrian points out, things aren’t as certain as they seemed a few months ago.
“It seems that the recent US elections have thrown some curveballs. While many people expected lower rates in Australia, the global economic situation is shifting. If the US imposes tariffs on other countries, it could lead to inflation, which might push the US to raise interest rates. And when the US hikes rates, we often follow suit. This could mean higher rates for borrowers here, especially those with larger loans,” Adrian tells us.
So, what does this mean for us Highlanders?
“If you have a mortgage with a balance of $500,000 or more, even a small rate increase could have a noticeable impact on your repayments,” Adrian adds.
That’s why it’s majorly important to review our mortgages now before any economic storm clouds gather.
Good to know!
2 :: Review Your Rate
If you’re not on the best rate right now, it might be time to revisit your mortgage.
With the possibility of rate changes ahead, you don’t want to be stuck paying more than you need to… no, siree!
“Sometimes, borrowers get comfortable with their current lender or don’t realise they could be getting a better deal elsewhere,” says Adrian.
He recommends checking if your lender still offers competitive rates.
“Many borrowers default to the top four lenders, but there are other options out there that could save you some serious cash.”
It’s worth speaking with a broker like Smart Mortgage Services, who can give you the lowdown on the best rates available.
3 :: Flexibility Is Key
When the economy starts shifting, flexibility in your mortgage terms can be surprisingly helpful.
Adrian highlights how essential it is to have the ability to lock in a low rate when you see a great deal or make additional repayments if you can afford it.
But, heads up, not all lenders allow these options, especially with fixed-rate mortgages.
“If your current lender won’t let you make extra repayments or access any equity you’ve built up, you might want to look into other options. Having the flexibility to pay down your mortgage faster or redraw funds when needed can give you more control over your financial future, especially if rates start to rise.”
4 :: Hidden Costs And Fees
You might think your mortgage is ticking along fine, but sometimes hidden fees or conditions in your agreement can sneak up on you, yikes!
These could be things like high penalty fees for extra repayments, or restrictions on how you can access your funds.
A mortgage broker can help you uncover any fees or conditions that might be eating into your savings. Plus, brokers have access to a wider range of lenders, including those that offer more competitive rates.
5 :: When To Review Your Mortgage
So when is it actually a good time to give that mortgage a review?
Usually, if there’s a change in your life circumstances, Adrian explains.
Maybe you’re planning a renovation, expecting a new addition to the family, or facing a change in income.
These things will likely affect what you need from your mortgage, so it’s a good idea to make sure your current deal still lines up with your goals.
Here are a few signs that it might be time to review your mortgage:
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You’re no longer on the best rate: If your current mortgage rate is higher than what’s available on the market, it’s probably time to shop around.
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Your financial goals have changed: Whether it’s buying a new home, renovating, or saving for the future, your mortgage should fit your evolving needs.
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Life changes are coming: A new job, growing family, or lifestyle changes can all affect how much you can afford to repay. A flexible mortgage could be the key to managing these changes.
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You’re experiencing financial stress: If repayments are starting to feel a bit too much, refinancing to a lower rate could ease the pressure and make your repayments more manageable.
6 :: How A Mortgage Broker Can Make The Process Easier
When it comes to figuring out your mortgage and getting the best deal, connecting with a local mortgage broker is a great way to begin the process.
Adrian and his team at Smart Mortgage Services are all about offering unbiased, honest advice.
They don’t play favourites and don’t charge borrowers a cent for their service, instead, lenders pay for the work brokers do.
So, if you’re unsure whether your mortgage is still the right fit, it’s worth reaching out to a broker. They’ll help you understand your options and guide you through the process of reviewing or switching to a better mortgage.
With interest rates potentially on the move, now is a good time to take a step back and assess your mortgage.
Whether you’re looking for better rates, more flexibility, or just want to ensure your mortgage still fits your financial goals, a quick review could save you money and stress in the long run.
Give Smart Mortgage Services a call to get the ball rolling, and to learn more about how this local business can work wonders for your home loan, head to their website here.
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