Whether you are in the market as a first home buyer, looking to refinance or you are a property investor, you will need to find the best home loan and the lowest rates that best suit your needs. . Here are three tips that will help ease your search for a perfect mortgage rate.
Build Your Deposit : Save, Save, Save – the more you have available the easier it will be to get a home loan in Australia. As a minimum you will need a 5% deposit and funds to cover costs such as stamp duty and legal fees. But the more you save the more choice is available – there are far more loans available at 90% of a property value than 95% and below 80% you avoid the significant expenses of lenders mortgage insurance.
Work On Your Credit Score : Australia now has positive credit reporting, in the past it was only negative items that were reported – loans that hadn’t been paid, credit cards that were overdue but now much more information is being gathered and this allows lenders to really understand what kind of risk you are – no longer is it black and white so the more you can do to make yourself a lower and lower risk then the better.
Compare Interest Rates : Be independent while home loan interest rate comparisons in Australia. Good mortgage brokers are hard to find and unfortunately a bit like insurance you won’t know if you have made the right decision until something goes wrong – hopefully that happens before you sign anything! Recommendations are always helpful but make sure you do ask lots and lots of questions to get yourself comfortable Also make sure you use a good quality home loan comparison website like thefinancesite.com.au so you can validate all the information you have been given and do some independent research.