As exciting as the prospect of being completely debt-free is – there are a few things you should review before making that last home loan repayment.

After all your efforts to reach this coveted destination, the last thing you want is to have to deal with a heap of loose ends that could leave you high and dry.

Here are three practical steps you should take well ahead of cracking open the champagne.

 

1. Check your insurance

When was the last time you reviewed your home and contents insurance?  Research shows that 40% of households are underinsured, and a whopping 29% don’t have insurance at all!

The chances are – your home and contents worth has changed over the years.  Save yourself any financial setbacks by attending to this early.

 

2. Revise your title

Get on top of this sooner rather than later, particularly if you are hoping to sell your property quickly.

The bank holds the Certificate of Title until you have repaid the full loan – essentially meaning the lender has ownership of your property.  As you approach the tail end of your mortgage, you need to discharge your home loan and get that piece of paper in your hot little hands in your name only.

 

3. Review your estate plan and will

If you don’t yet have a will, it’s advisable to get one.  Even if you do have a plan, you should be reviewing and updating it regularly, according to any significant life changes.

If you don’t get this sorted, the court will appoint an administrator to handle your affairs – which can end up being a timely and expensive exercise.  Similar to insurance, it’s a good idea to protect your assets now and in the future.

 

Attending to these factors should be relatively straightforward and easily accomplished.  Because when that crate of champas hits your doorstep – you want to savour the moment, knowing you can truly take a load off.

In the meantime, come and have a chat with us about ditching your mortgage sooner than you think.  Cheers!