| How to Secure Your Lowest Home Loan Interest Rate
Lowering your interest rate can make a significant difference to your finances, potentially saving you thousands of dollars over the life of your mortgage. Additionally, if you use it to your advantage, a lower interest rate could shave off years from your loan repayment period. Therefore, it’s essential to secure the lowest home loan rate you can and continue to check for better rates regularly.
To find the right loan, options, and interest rate for you, substantial research is necessary. You can browse individual lender websites or use an online home loan platform. Alternatively, seeking help from a professional mortgage broker who knows how to access mortgage products that may be challenging to find by yourself can save you stress, time, and money.
When comparing rates, be sure to consider “comparison rates,” which include all other fees you may be charged for the loan. Advertised rates are often not the lowest available, and lenders will often negotiate lower rates than publicly advertised. Don’t be afraid to ask for a better rate, as many lenders will go the extra mile to secure new business or keep you from switching.
New customers often receive the lowest rates, so it’s worth calling your current lender and mentioning that you’re considering switching lenders for a better rate. Regularly, they will offer you a lower rate to keep your business.
Having assets such as a clean credit file, savings history, employment stability, and previous/current mortgage repayment history can strengthen your negotiating power with lenders. Therefore, it’s crucial to ensure your credit file is clean by ordering a copy of your credit report and paying bills on time. If you have no credit history, it’s important to establish one to show that you’re capable of making on-time payments.
If you’re applying for a new loan, having a larger deposit improves your chances of obtaining a lower interest rate. It’s best to have a deposit above 20% to avoid Lenders Mortgage Insurance. If you’re refinancing or negotiating a better rate on your current loan, it’s essential to show that you have substantial equity in your home and a Loan to Value Ratio of less than 80%, which may require a bank valuation.
Securing a better interest rate is related to the level of risk you pose as a borrower and how well you can negotiate with your assets. A good mortgage broker can be a great help in securing a better interest rate.
Disclaimer: Although all care is taken. We do not give any warranty whatsoever to the accuracy of any content.
This is not meant to be financial or professional advice and is only of general nature. You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever. We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever