Why you should consider switching your home loan for 2023
Are you getting the best deal on your home loan? If not, it might be time to switch your home loan and refinance.
Sponsored by Qantas Money. Switch to a Qantas Money Home Loan and receive 100,000 Qantas Points every year for the life of the loan.* T&Cs apply.
Home loans don't have to be loans that you pay off passively over a few decades.
When they're at their best, they're proactive tools that allow you to improve your financial standing and benefit your wider circumstances.
The home loan market is always changing too. You should take stock of your financial products regularly and make sure you're getting the best deal.
If your loan wasn't hitting your expectations during 2022, maybe it's time to reassess and consider switching your home loan for 2023.
1. Securing better perks for yourself
A lot of conversations around switching home loans tend to focus on the interest rate – and don't worry, we'll get to that shortly.
But there should be a range of different considerations in play when you're looking at new loans.
What sort of perks are included should be a primary factor. If you're going to be paying back a loan for an extended period, you want to make sure it's giving you tangible benefits.
There are different perks available depending on the lender, such as cashback, waived fees, online subscriptions, vouchers, travel and much more.
It's always worth paying attention to new entrants to the market too. They can sometimes have interesting offers to grab new customers.
Starting February 2023, Qantas Money Home Loans will offer borrowers 100,000 Qantas Points every year for the life of their loan. Qantas Points can be redeemed for a variety of different rewards, including flights, hotels, tech and high-end household items, to name a few.
So before deciding on which is the best lender for your needs, check out which perks will suit your lifestyle best.
2. Being able to make additional repayments
One of the big traps that inexperienced borrowers can fall into is a home loan with rigid repayment terms.
You can find yourself paying huge amounts in extra (and needless) interest or early repayment fees.
The good news is if you're in a financial position to make extra repayments but your loan won't let you do so without penalty, there are other options available.
For example, Qantas Money Home Loans allow you to make additional repayments on your home loan without incurring penalties. Make repayments up to $20,000 per year on a Qantas Money Fixed Home Loan, or unlimited repayments on a Qantas Money Variable Home Loan.
Features like this let you pay off your loan more quickly and save cash on interest repayments.
It's becoming an increasingly common factor in new home loans, so do your research and find the right one for you.
But if you've been stuck with the older home loan model of restrictive repayments, it may be time to make a change.
3. Better loan features
Loans shouldn't be bare-bones. A modern home loan should include a range of features that make it easier for you to manage your money – as well as the loan itself.
Qantas Money Home Loans offer borrowers an optional offset account at a fee of $10 a month. It's available on both fixed and variable loans as well.
An offset account is linked to the balance of your home loan. It sits adjacent to the capital that has been repaid, allowing you to keep interest repayments down.
However, it still gives you easy access to your cash and functions as a day-to-day account if necessary.
Cash redraw is another popular loan feature too. This lets you redraw funds from the amount you've paid on the loan.
This can be a handy tool for accessing cash if an emergency arises or if you just need to access some capital to take advantage of another opportunity.
Qantas Money Home Loans allow you to do this for free if you're doing so online, such as to transfer money from one account to another.
Qantas Money Home Loans let you carry out redraw and other loan-related tasks in person via Bendigo Bank branches for a fee, if this is your preference.
There are numerous loan features available for home loans, so take a look around at a range to make sure you find the right one for your needs.
4. Improve your interest rate
We promised you we'd get to interest rates – and here we are.
There's no question that getting a lower interest rate is one of the main reasons people look to switch home loans or refinance.
It's a conversation that took on a new urgency in 2022 given the recent interest rate rises from the Reserve Bank of Australia (RBA).
Lots of Australians are feeling the hit to their hip pockets. If you find yourself in a tight spot, it may be time to look at whether it's worth refinancing. Particularly if you're coming off an existing fixed loan.
A large number of fixed home loans are coming to an end in 2023, and there's real potential for sticker shock when home loan holders see what their new repayments may be.
Qantas Money offers competitive fixed and variable rates for investors and owner-occupiers.
There are benefits to both fixed and variable rates. Everyone's circumstances and capacity to make repayments are different. So ideally you should look for a blend of a healthy interest rate and loan features in your home loan.
If you're unsure about whether your home loan is right for you, speak to a mortgage broker or financial professional.