How to get a better home loan

Mark Fitzpatrick | May 25, 2018

I’m often asked how often people should review their home loan or even look for a better home loan deal? 

The question general stems from borrowers wanting to reduce their monthly repayments and help pay off the loan more quickly.

It is a great question and like most things, all it takes is a few phone calls, some paperwork, and a little patience. It’s not as difficult as many make out.

With increasing competition in the lending industry, the notion of regularly reviewing a mortgage and refinancing is now widely accepted. 

I have seen a sharp increase in homeowners wanting to find a better deal and save on their mortgage, as they understand there is more competition out there than ever.  

It’s difficult to pinpoint how often you should review because the industry is constantly changing, interest rates are shifting, but it makes sense to review every year. 

The anniversary of your loan might be a good trigger.

If you have a $600,000 loan and the rate is 4.5% don’t be surprised if you could find a loan with a rate 0.5% (or more) lower. This would save you $90,000 over 30 years.

To quickly explain the process. Whether using a broker or doing it yourself, refinancing does mean paperwork. 

It’s a full loan application, so you need things like income details, loan statements, identification and a few other things your broker or lender can advise you on.  

Frustrating… maybe, a little bit of effort… yes – but you will save thousands of dollars. Your money is better to be in your pocket, than someone else’s

If you’d like to know more give me a call on 0410 442936 or simply ask me a question.

Bye for now

Mark