Tips for Finding the Best Home Loan Interest Rates in Australia

Tips for Finding the Best Home Loan Interest Rates in Australia

Buying a home is a huge financial commitment, and finding the perfect home loan can be a challenging process especially for first time home-buyers. Before getting too far into the process, doing a comprehensive comparison against the best home loan interest rates in the market is the key to getting the best deal.
Interest rates in Australia are at historically low levels and whilst industry sentiment is of another RBA rate reduction, consumers remain concerned that the bank will continue their 2016 approach of out of cycle rate increases.
Finding the lowest home loan interest rate has become a priority for most Aussie home buyers. Over the past 12 months, the cash rate dropped twice -in February and May of 2015 – with the current 2.0 per cent being the lowest so far. However, with lenders introducing rate increases independent of the RBA many borrowers are now concerned that their repayments will continue to increase through 2016 and a large group is now considering moving to a fixed rate.

Finding the Best Home Loan Interest Rate

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%. Saving 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 so you can validate all the information you have been given and do some independent research.

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