- Think about matching your home loan amortization term to the same as what you have remaining now. Obviously this can be important if you become a habitual switcher so that you do not have thirty years remaining after thirty years.
- However sometimes strangely enough, it might be time to extend the home loan term. If you are approaching something which would mean dropping down to one income. Or a scenario where you are approaching a point where you may need to borrow more. For buying an investment property or renovations. This is due to the fact that at times the shorter terms can have an impact on the servicing tests(especially when test rates are high) and extending a term during the middle of a fixed term can be expensive.
- 3. Look at a fresh structure, this is the perfect time to consider hedging your bets with the loan split over two terms or products which help with reducing debt, such as a revolving credit or offset.
It can be important to talk to an experienced banker or financial adviser (such as us) before locking in a structure.
