With interest rate discounts increasingly being offered by the banks and a growing number of non-bank lenders offering low interest rates, you are throwing money away if you are paying an “off the shelf” standard variable rate.
You can get a better deal and potentially save thousands of dollars over the life of a loan by being pro-active, rather than settling for a bank’s standard offer.
Here are some ways you can get a better deal on your home loan:
- Use a mortgage broker
Shopping around and going from bank to bank can be confusing and tedious. This is where we come in. As we work with banks every day, we are the first to know about lender discounts and promotions.
A professional mortgage broker can help you find the most suitable loan that meets your needs. We work for you, not the banks, and our service is at no cost to you. Good brokers get to know you and stay with you through the years, so as your needs change, we can re-assess the suitability of the loan you have.
- Consider using non-bank lenders
They can often offer lower interest rates and more flexibility than the major banks. In the heavily regulated Australian finance industry, non-bank lenders are just as secure as your traditional bank.
- When it comes to the loan itself, there are several things that contribute to getting a better deal:
- The size of the loan, as larger loans generally have more competitive rates.
- Having a 20 per cent deposit will get you a lower rate and you don’t have to pay Lenders Mortgage Insurance.
- Buying a property to live in and paying principle and interest repayments will also get you the most competitive rate.
For example, a lender may have a standard variable home loan rate of 5.24%. But for first home buyers, they may offer 3.69%. That’s a great discount! Other lenders may offer cashbacks when refinancing. So it really pays to talk to a mortgage broker who is across all the various discounts and promotions offered by the lenders.
Whether you are buying your first home or refinancing, let us sort through the myriad of loan options to find you a better deal and most suitable product.
Contact Your Future First on 03 9362 1458 or email andy@yourfuturefirst.com.au