First Home Buyers today have more options than ever which means that choosing the right home loan is as simple as knowing who to ask. The right home loan features when combined with a good interest rate will save you money and cut down the life of your loan. Use the 5 steps below to guide you through the process of finding the right home loan.
5 Steps to Choosing the Right Home Loan
Step 1: Consider your current and future needs
The right home loan is one that will fit in with your current situation while providing the flexibility to cater for your future needs. Get your local mortgage broker to conduct a free home loan assessment, this will usually take into account your plans over the next 5 years and factor in if:
- Your monthly spend can cope with a change such as an interest rate rise
- If your objective is to pay off the home loan as quickly as possible
- Are you disciplined when it comes to sticking to a budget
- If your income is likely to increase or decrease over the next 5 years
- How will a change in your family situation, such as having a baby, affect your income and expenditure?
Step 2: Take the time to understand different home loan features
Get an explanation of how different product features, fees, entry and exit costs will affect the overall cost of your home loan. For instance, if you are planning on starting a family, a home loan with a repayment holiday feature could reduce some of the financial burden at a very important time. To find out which home loan features are right for you, fill in the brief contact form on this page and we will be in touch shortly.
Step 3: Compare quality home loans from secure lenders
To ensure that you are getting a quality home loan product, shop around with secure lenders and trusted banks. Keep in mind that any information you can obtain with regards to interest rates, fees and terms, can ultimately be used to your advantage at the negotiating table. A good mortgage broker will already possess this knowledge and will have access to a panel of banks and other secure lenders. To find the quality home loan product that’s right for you, complete our brief mortgage broker request form.
Step 4: Negotiate a cheaper interest rate
You will often find that you can negotiate on your interest rate. If you are borrowing a higher amount, ask the lender what discount rates apply to your home loan and if they are able to top rates you found elsewhere. To access low rates and get plain english answers to your home finance questions, get your local mortgage broker to help.
Step 5: Use a good mortgage broker to negotiate a better deal
A good mortgage broker has established relationships with a panel of major banks and secure lenders that allows them to negotiate a more personalised home loan package for you. Their knowledge of the products and industry experience will also mean that they can help you:
- Compare quality home loan products from a panel of Australia’s trusted lenders
- Find the home loan features that suit your current and future needs
- Negotiate a cheaper interest rate and a better home loan package
- Help you complete your application and all supporting documentation
