Regardless of what the RBA decides at its monthly meeting, what lenders do to home loan interest rates, and what the economy looks likely to do both domestically and globally, your own mortgage future largely depends on… well, you.
Pundits will always weigh in on what’s going to happen next: House prices, housing affordability, cash rates, bank lending policies, the Aussie dollar, the American trump card… But the best way to find security and stability in your home loan is, simply, to stay on top of it.
Know your product and check your options.
Interest rates are currently quite volatile with many of the factors above having an affect. Therefore, it is crucial that you do your homework and make an informed decision on who your loan is best placed with. So, talk to your broker to have them assess all of this for you and talk you through your options.
So, how do you ensure you’re going to save money on your mortgage?
Homeowners need to know their fixed and variable interest rates and be willing to change loan products if external factors mean there’s a better deal somewhere else.
Start with these five tips:
- Check your rate. Competition is high among lenders, so it’s easy to bag a bargain. Make sure your rate is less than 4 per cent.
- Shop around! Be prepared to haggle with your lender to get the best deal out of them.
- Consider fixing. Despite some limitations, fixing your rate while the numbers are low is a great way to add certainty to your mortgage future.
- Throw some extra on the pile. Even an extra $10 or $20 a week can mean thousands off your mortgage over the life of the loan.
- Watch the news. Rising inflation and instability in the US are good indicators of future rate rises.
Your unique situation could mean the best loan isn’t necessarily the lowest rate. Be wary of very low rates at the moment as these are often with lenders who will raise them on you tomorrow once they have your business. Talk to us about your personal needs and let us do the negotiating for you!
Call us today for a free mortgage health check on 02 8354 3014.