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Top 6 financial resolutions for homeowners in 2022

By ,| 3 min read

As we welcome the 2022 new year, it’s a good time to take stock of the year just passed. If you’re a homeowner, you might be looking back on 2021 to see whether you achieved your financial goals, or you might be thinking about how you can improve your financial health in the year ahead.

Whatever your situation, make 2022 the year you get on top of your home loan and personal finances. Here, we’ve compiled a list of financial new year resolutions to help you put your best foot forward in 2022.

Review your home and contents insurance

We get it – you’ve had more pressing things to deal with in 2021 than looking over your home and contents insurance. If you haven’t checked on your insurance policy for a while, 2022 is the year to do so.

It’s worth reviewing your home and contents policy regularly to make sure it’s still right for you, and that you’re getting a good deal. Insurance premiums can fluctuate year on year and are impacted by many factors including the level of cover you choose, your excess, any optional extras plus costs to the insurer that are beyond your control.

Chances are, your premium has gone up since the last time you checked, so it might be time to see if there are more competitive deals out there. Or, you might have increased the value of your contents this year, so your policy needs to be updated to reflect the amount you need covered.

Compare your home loan interest rate to see if it’s still competitive

Interest rates have been at historic lows over the past year but they’re already on the rise, with some banks upping their rates even though the official cash rate isn’t due to increase until 2023.

So, if you haven’t checked your interest rate in over a year, it’s likely you’re missing out on a lower rate. You can search and compare interest rates online, making it simple to do a quick rate review at home.

If you find that you could be paying less in interest on your home loan, it’s worth negotiating with your lender for a lower rate or refinancing with a different lender for a better rate. It’s important to note that if you’re on a fixed interest rate and you wish to break your fixed term, you may be charged break fees for doing so.

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Make extra home loan repayments (if you can afford it)

It’s fair to say that most homeowners would love to pay off their home loan sooner and save money along the way. Making extra home loan repayments is a great way to get you on track to paying off your mortgage faster. This also means you pay less interest on your loan overall.

Extra repayments are allowed on most variable rate and split rate home loans, however, they’re usually not allowed on fixed rate home loans. You might decide to make regular extra repayments or aim to use lump sums throughout the year (like a tax refund or work bonus) as extra repayments on your loan.

Check if you’re paying for any home loan features you’re not using

If you’ve left your home loan on autopilot recently, it’s possible you’re paying for features you’re not even using. Extra features like offset accounts, redraw facilities, home loan portability and credit cards that come with home loan packages usually incur additional costs on your mortgage.

In the new year, make an effort to go over your home loan features to check for anything that you’re paying for but not using. Even if you are using a feature like an offset account, make sure the savings you gain from the account outweigh its associated fees – otherwise, you could be losing money.

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Conduct a general financial health review

Once you’ve done a thorough review of your home loan, it’s a good idea to assess your finances as a whole and make goals for any areas that you’d like to get back on track.

You might want to look at areas like:

  • Your bank account/s, and if you could be paying less in fees or earning more in interest
  • Your savings, which might include starting an emergency fund for unexpected expenses
  • Your superannuation – do you need to consolidate several accounts, or could you be getting a better return on investment?
  • Any outstanding debts like credit cards or personal loans and whether you could pay less interest by consolidating them into your home loan
  • Other insurance policies you have like car, health or life insurance – do these policies still suit you or could you be paying less in premiums?
  • Your internet, phone, electricity and gas providers – are you getting the best deal out there?

Doing a review of your finances at the start of the year can help prepare you for the year ahead – and you might be surprised by how much money you can save by doing so!

Review your landlord insurance

This one is for the investors – when was the last time you went over your landlord insurance? While it’s easy to let this one fall by the wayside when you have a property to look after, it’s important to ensure that your policy is up to date and you aren’t overpaying.

Much like home and contents insurance, landlord insurance premiums can rise and fall at any time, so it’s worth comparing policies to see if you could be paying less elsewhere. Also, if the price of rent for your property has changed or if you require higher coverage now than when you first took out your policy, it might be time to call your insurer.

If you’ve resolved to get on top of your home loan in the new year, Lendi can help. Book an appointment with one of our Home Loan Specialists to learn more about the home loan options available to you.

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The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.

Tags: home loan, refinance, fixed interest, interest rate, variable interest, home insurance, extra repayments, offset account, debt consolidation

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Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.

# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.

Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 25 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. Lendi Group Pty Ltd, which is the ultimate holding company of the Aussie and Lendi businesses is owned by numerous shareholders including; banks such as CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, the Lendi founders and employees, and a number of Australian institutional investors and sophisticated investors including UniSuper.

*WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.

IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria. Top rates include lenders who are on our panel and are then defined by the circumstances provided by the borrower.

The Lendi Group Pty Ltd, which is the ultimate holding company of the Aussie and Lendi businesses is owned by numerous shareholders including; banks such as CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, the Lendi founders and employees, and a number of Australian institutional investors and sophisticated investors including UniSuper.

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