At the time of making a big financial decision, we pour all our time and energy into securing the best possible deal. However, after the transaction has taken place, what traditionally happens is we forget about it, often based on the assumption that the deal that was initially secured will always remain that way and be the best in the market.
But, the world of banking and finance is an ever-changing landscape and your own personal situation can change from year to year which is why it is so important to review your finances regularly. So when, why and how often should you review?
The changes around us
Since the GFC in 2009, the scrutiny of banks during the royal commission and more recently COVID-19, lending requirements, policy and servicing has been through many changes! The likelihood is most of us fall into the trap of assuming that our deal is still competitive but the stark reality is that it may not be. Regularly reviewing your portfolio is likely to pay off – whether it’s looking at interest rates, incentives to refinance or the value of the relationship you have with your lender.
The questions to ask
Different banks and lenders all charge different fees & interest rates along with different products and packages. Some incentivise new clients rewarding them with the best rates – so this may mean that as an existing client, you’re missing out. Some of the questions you should be asking include:
Has your bank passed on any rate cuts or have they recently increased your rate outside of the reserve?
Are you set up on a package and paying a yearly fee but not utilising the benefits of the package?
Has your loan to value decreased meaning you’re eligible for a better interest rate?
Are you paying quarterly or monthly fees for your business loans?
Is your bank enforcing annual reviews and covenants?
For almost all of these questions, there are alternative options available that your existing or a new lender should make you aware of, so don’t shy away from asking.
Keeping up with your plans
At different stages in our careers and lives, our financial objectives change. Whether it be planning for retirement or planning for children, this is going to impact the structuring of your loans. The loans you took out 5 years ago may not suit your needs now! For example, you may have purchased a new home as an owner occupier but perhaps your long-term plan to is to make that very home an investment property. The structure of the loans you set up now can be adapted to suit that goal (even if its 10 years away!).
Service and value
At Credabl, we understand your profession and can navigate the lending landscape intimately. But most importantly, we have your back. Our team are here for the long-haul so whether you’re setting up a new practice today or looking to buy your retirement home, we understand your short and long term goals and will not only work with you to achieve them, we’ll be by your side to review them on a regular basis.
Whether you’re new to seeking finance or ready for a review, we’re available to chat live on our website www.credabl.com.au or you can call one of our specialist lenders on 1300 27 33 22.
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