Whether you’re planning to build or buy, chances are you’re going to need a home loan. For most of us, our home is the biggest asset we will have and something that we hope to have for years to come. With that in mind, it’s really important that you make smart financial decisions about your home loan to ensure the home loan you choose is a good fit for you. Here are my top 3 tips for securing the best home loan:
1. Look Outside the Banks
Banks aren’t the only money lenders out there that can provide financing for a home. If you’ve been rejected by banks, it also doesn’t mean that all hope is lost. You can turn to companies like Quantum Finance Australia in order to get accessing to a huge group of private lenders. You might be surprised to find that private lenders can offer you more favourable interest rates, which will result in real savings for you over the course of your loan. Spending a bit of time shopping around to find the best loan will save you thousands over the course of your loan.
2. Crunch the Numbers
You’re going to need to get really comfortable with your spending to get the best mortgage possible. It can be a bit stressful really getting into your finances and seeing what you’re spending and where, but it’s absolutely essential for ensuring that you get a mortgage that you can afford. I find it important to add in some wiggle room into your budget to account for unknown expenses that might come up. I also personally always suggest setting up an emergency fund of at least 3 months expenses before taking on any more debt. The smaller the loan you can go for, the better!
3. Negotiate
It’s one of those things where if you don’t ask, you wont receive. Many money lenders have the ability to shave a few points off the interest rates. While 0.02% or even 0.01% difference might not seem like a lot, over the course of a loan it can add up to a lot of extra money in your back pocket. You can even consider outright asking if a money lender can beat another lenders offer. At the end of the day they’re going to want your business so will do whatever they can (within reason) to get it.
A home loan is likely one of the biggest loans you’ll ever take, so use these tips to ensure you get the best deal possible.
