What is a Home Loan Health Check?

When was the last time you checked in on your home loan? At Bendigo Bank, we’ve streamlined the process by offering our free Home loan health check service to anyone, even if they don’t bank with us. Here’s what’s involved and how you can benefit.

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How Bendigo Bank customers saved $5,772 on their home loan

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Ross: This whole project for us started when Penny showed me this design on Instagram and said, "this is my dream home" and I absolutely agreed, so we decided to build it.

We were introduced to Bendigo Bank and Amanda was introduced to us via a friend and she absolutely understood what the project was and how they could play a role in making it work, so we're completely grateful for that.

Amanda: Penny and Ross reached out to me through one of their friends that I had helped with their home loan and they'll actually just after a home loan health check.

A home loan health check is when we go through all of our customers current loans and accounts with other banks, and we figure out the best option going forward for what it is that they need.

Amanda: In Ross and Penny's case, they both work from home so having a mobile lender makes life easier for them and it fits into their lifestyle.

Ross: We'd spent a lot of time talking to other banks and had really felt like they didn't realise there was people on the other end of the conversation, whereas with Bendigo Bank, we really felt like she took the time to understand who we were, she took the time to understand what the project was and was able to shape the Bendigo Bank products to to suit our needs.

Amanda: After their initial home loan health check, we managed to save them over $5,500, which for them worked out to be over $200 per fortnight.

Ross: We found the whole Bendigo Bank experience fantastic. If you're thinking about refinancing your home loan or wondering whether that dream home is in reach, what we would say is please call Bendigo Bank today, do your home loan health check. You can absolutely trust the experience and flexibility at Bendigo Bank. I don't think you need to go anywhere else.

Amanda: Whether you're a Bendigo Bank customer or not, book an appointment now for a free Bendigo Bank Home Loan Health Check.

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What’s involved in a home loan health check?

“A Home loan health check is where we go through all the customers current loans and accounts with other banks, and we figure out the best option going forward for what it is they need,” explains Bendigo Bank’s Amanda Fleming, Senior Mobile Relationship Manager.

The process starts with a review of your current interest rate, loan structure, home value, repayment options and remaining loan term. We’ll also ask you about your goals and aspirations and any short or long term plans you have for your lifestyle.

“It’s really easy to just ‘set and forget’ when it comes to long term financing such as a home loan – it’s not generally an area most people give much thought to”, Amanda continues.

From here we’ll explore options that are available to you in your circumstances. Every borrower has different needs, goals and aspirations, so a loan that’s suitable for one person won’t always be suitable for another.

Why do I need a home loan health check?

Keeping the same home loan for a long period of time can mean you miss out on more favourable loan options and interest rates. Plus, as your circumstances change, you may be able to benefit from new features, repayments, or interest rates, and better align your home loan to your life plans. You may even be able to unlock equity in your home to finance a renovation, dream trip or to purchase another property.

Get a lower interest rate

Amanda can save her customers hundreds or thousands of dollars in interest with home loan health checks. She recently saved Penny and Ross Norris $5,772 in the first year of their home loan. That’s a saving of $481 per month in repayments.*

“Interest rates are typically determined by the loan amount as compared to the property valuation (LVR),” she explains. Lower loan to value ratios (LVR) can sometimes allow you to secure a lower interest rate.

“When a customer has had their home loan in place for a while, their LVR may have improved over time as a result of an increase to their property value and a decrease to their outstanding loan balance,” she continues.

Access more suitable features

Older home loan products may not have the features that best suit your current financial situation. Amanda explains how she assisted a customer who had a traditional loan product in place that didn’t offer an offset account.

Having amassed significant savings, they were missing out on the opportunity to lower their interest repayments. “By restructuring their loan product and linking a 100% offset account, the customer reduced their interest charges substantially.”

Achieve your goals sooner

For Penny and Ross, a home loan health check helped them finance a build on a new home for their family. “For me managing the project, the financial side can be a little bit overwhelming,” Penny said. “Having all three accounts being managed in one spot with Bendigo Bank, and the team helping me navigate the finances, the administration, the payments, makes it so much easier for me.”

When completing a home loan health check, your Bendigo Bank representative will get to know your whole situation and review your home loan in line with your goals. Ross explained that Amanda took the time to “understand who we were and what the project was” and tailored the solution to their specific needs.

“We found the whole Bendigo Bank experience fantastic. If you're thinking about refinancing your home loan or wondering whether that dream home is in reach, what we would say is please call Bendigo Bank today, do your home loan health check. You can absolutely trust the experience and flexibility at Bendigo Bank. I don't think you need to go anywhere else.”

How often should you review your home loan?

Amanda recommends customers check in with their home loan annually. If it’s been some time for you, it could be worth exploring your options. Other signs that it’s time to review your home loan suitability include:

• Your interest rate is higher than advertised rates for new customers (or you don’t know your rate at all!);
• You don’t have access to features like an offset account;
• Your circumstances have changed since you took out your home loan, e.g. income changes or life goals;
• Your fixed rate has ended (or is ending soon);
• You were previously on a special offer ‘honeymoon’ rate which has now reverted to a higher rate;
• Your home value has increased.

Realise your goals sooner with a home loan health check

Neglecting to review your home loan regularly can mean missing out on big opportunities, like accessing equity in your property or making significant savings on your interest repayments. If you’ve got goals you’re working towards, a free home loan health check with Bendigo Bank could unlock opportunities and get you there faster. Plus, our Mobile Relationship Managers can come to you – it couldn’t be easier.

Find out more about Bendigo Bank’s free Home Loan Health Check service.