Mortgages, unlike car loans, are considered ‘good debt’. Owning a home is an investment and offers more security than renting. But some mortgages come with interest rates that can increase your overall debt and monthly repayments.
Every few years, compare your home loan’s interest rate against other lenders’. If there is a lender that offers a lower rate for a comparable product, refinancing your home loan could save you thousands of dollars and shorten your home loan term.
If 2020 was a tough financial year for you, you can recover. By applying these principles, you can become more financially secure in 2021. However, always consult a professional when making big financial decisions, like refinancing your home loan or consolidating your debts, as these choices don’t suit every borrower’s circumstances.