Getting the best deal on a home loan ultimately comes down to one thing: knowledge.<\/strong><\/p>\n John Tindall, a Choice Home Loans<\/a> mortgage<\/a> broker in Wattle Grove, Sydney, says with discounting the \u201cnew norm\u201d and a growing number of non-traditional lenders<\/a> offering low interest rates, there\u2019s no reason to pay the \u201coff the rack\u201d rate any more.<\/p>\n Tindall says borrowers can get the best deal \u2013 and save tens of thousands of dollars over the life of a loan \u2013 by being pro-active, rather than settling for a bank\u2019s standard offer<\/a>.<\/p>\n \u201cPeople should definitely shop around,\u201d Tindall says.<\/p>\n Looking for a better deal? Start your research here:<\/strong><\/em><\/p>\n Considering non-traditional lenders is a big part of this, he says. Tindall says the big banks\u2019 drive for greater profits has steadily eroded customer loyalty over the last 20 years.<\/p>\n \u201cEven though service improvements, like internet banking and call centres have replaced the need to visit a physical branch and the face-to-face element of banking, clients still say to me they \u2018feel like a number\u2019 and are happy to consider alternatives.<\/p>\n \u201cThe non-traditional lenders often have lower interest rates \u2013 and more flexibility \u2013 than the major banks,\u201d he says.<\/p>\n While shopping around sounds simple, going from bank to bank can be \u201cconfusing and tedious\u201d, which is where mortgage brokers come in, Tindall says.<\/p>\n Mortgage brokers helps you find a suitable loan that meets what you want. Picture: Getty Images<\/p>\n<\/div>\n \u201cA mortgage brokers\u2019 role is find you a suitable loan that meets what you want.\u201d<\/p>\n \u201cThey\u2019re working for you, not the banks, and usually get paid only when you get the loan you want. Good brokers get to know you and stay with you through the years, so as your needs change, they can re-assess the suitability of the loan you have.\u201d<\/p>\n When it comes to securing the loan itself, several things contribute to getting a better deal, he says.<\/p>\n \u201cIn rough order of importance, these are the size of the loan, having a 20 per cent deposit, whether the property is to live in or will be an investment and whether you\u2019re paying down principal or just the interest,\u201d Tindall says.<\/p>\n \u201cFor example, one non-traditional lender currently offers an interest rate of 3.74 per cent for a $700,000 loan, for less than 80 per cent, owner-occupied, principal and interest loan. A $150,000 loan, for 80 per cent, investment, interest-only loan is at 5.88 per cent \u2013 which is about two per cent more expensive!<\/p>\n In tough markets like Sydney, using a non-cash alternative such as parental equity rather than a 20 per cent deposit can help. Picture: Supplied.<\/p>\n<\/div>\n \u201cEven if you don\u2019t have a 20 per cent deposit, which is especially tough in places like Sydney, using a non-cash alternative, such as parental equity, can help,\u201d he says.<\/p>\n Knowing, either through research or a broker, about the special offers and discounts available can result in significant benefits for borrowers, Tindall says.<\/p>\n \u201cFor example, one lender has a standard variable home loan rate of 5.24 per cent at the moment. But for first home buyers with a 20 per cent deposit, there is a 3.66 per cent two-year fixed rate. The difference on a $700,000 mortgage is around $7000 a year. And that lender is also offering reward points worth around $1400.\u201d<\/p>\n It\u2019s also important to look closely at credit history before applying, Tindall says.<\/p>\n \u201cAlmost all lenders will review your credit history for signs of trouble in the past,\u201d he says.<\/p>\n \u201cThese need not be fatal to an application, but need to be explained before an assessor has to ask. Some non-traditional lenders will look at applicants with credit history \u2018hiccups\u2019, however the rates and fees tend to be higher, so it\u2019s important to know.\u201d<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"![\"mortgage](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/08\/23151106\/mortgage-broker_2000x1500-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\n![\"Super](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/07\/23000130\/capi_1408eb5a44f478b75df3cd5001a10f43_614a7a99cf9e1ddf4047f07385217c81-1024x768.jpeg?resize=1024%2C768&ssl=1\")
<\/p>\n