Your home loan will most likely be the biggest financial commitment you will ever make, so shopping smartly for home loan rates is extremely important. Whether you've decided on fixed or variable home loans, here are some top tips to make sure you have the best value home loan rate in the market.
1. Consider the whole package
The interest you pay on your monthly repayments is only one of the outgoings you will be charged for your loan. Loan fees may also apply. Make sure you factor in other costs like one-off establishment fees, and charges for additional features like credit cards or offset accounts. Mortgage calculators like Choice Home Loans’ Complete Loan Comparison can help with this.
2. Look for discounts
All major lenders have a standard variable home loan rate, but this is not necessarily their only or best offering. Ask about a ‘basic’ rate, which often includes a rate discount if you opt to have fewer features included in your home loan package. If you have a large deposit, banks may also offer you a rate reduction.
3. Wait out the money market
Home loan rates can become cheaper across the board when the economy is slowing and banks want to encourage people to borrow. If you’re not in a rush to buy a home, waiting until rates are low is a good option, although this may cause home prices to rise.
4. Make the most of your history
Banks often offer discounted home loan rates to their long-time customers, providing you have a good credit history. While it’s still worth shopping around to check other lenders’ deals, you probably stand the best chance of negotiating a lower rate with your existing bank, who can easily verify your credentials.
5. Talk to a mortgage broker
Mortgage brokers can offer you valuable advice on how to accurately compare the home loan rate market, and they can often secure you exclusive low rate deals through their relationships with lenders. To find out more, talk to one of our Choice Home Loans brokers.
Choice Home Loans can help you find the best home loan rate for your specific needs. To get the best home loan rate, talk to Choice brokers today.
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