Home Finance Experts Give Top Tips For Getting The Lowest Interest Rates
If you have been looking to apply for a home loan, you will have noticed that different finance houses and banks are offering different interest rates. Home finance experts offer advice on how to qualify for the lowest possible interest rate and some tips on reducing the total amount of interest you will pay over the term of your home loan.
Things You Can Do To Qualify For A Lower Interest Rate
Home finance experts will tell you that the interest rates that lending institutions quote on their websites and other marketing channels are not necessarily the rate you will pay. There are some things that you can do to negotiate a better rate, including the following:
- Shop around - start with your current banker to see what home loan options they offer their existing client, and then expand your search. Most mortgage brokers will have the information easily accessible on their website, so you can start to make comparisons and use this information when you negotiate a rate.
- Pay attention to your credit rating - make sure you pay your debts and keep your credit history in good standing. Lending institutions will view you less of a risk if you have a good credit history. Lower-risk clients are in a better position to negotiate for lower interest rates.
Ways Of Reducing The Total Amount Of Interest You Will Pay
Home finance experts will tell you that in addition to securing the lowest possible interest rate, you can also reduce the total interest burden over the period of the loan, but doing the following:
- Make larger monthly repayment - build into your budget that all excess funds are channelled into your mortgage loan. Making payments more than the requirement helps reduce the principal value of your loan faster, saving you thousands of dollars in interest and reducing the loan term.
- Put down a hefty deposit - this can help in two ways. Firstly, the principal amount of your loan will be lower, saving you a significant amount of interest expense. Secondly, you can leverage this position to negotiate a better rate with the lending institution.
Home Finance Experts Can Help You
Hiring a mortgage broker to handle your home loan is a smart move. These home finance experts have relationships with banks and finance houses and are in the best position to secure a good deal on a home loan for you. They can explain the whole process to you, from application to completion, saving you lots of money and headaches.
Contact Total Mortgages today and get top advice from our team of home finance experts. Applications can be made online to facilitate a quick and successful outcome to your mortgage loan requirements. Whether it is your first home, next home, refinancing, or investment property, we can help.