How to Get a Lower Interest Rate on Your Home Loan

In the current economic climate, low interest rates are not just a bonus – they are expected.

Fortunately, if you are working with a mortgage broker or a home loan advisor, they will be able to help you get the very best deal you can and that will mean you will be receiving the very best interest rates on your home loan.

So how do you actually go about getting a lower interest rate?

Ask for a Better Rate

As simple as it sounds, if you feel you could be getting a better rate, you might simply be able to ask for one.

If you’ve been with a home loan expert for a long period of time and have a great track record of making your repayments on time, they won’t want to lose you.

That gives you some power to go and ask for a better rate.

In many instances, lenders will incentivise new borrowers with low rate deals for a period of time. Your mortgage broker might be able to help you get a better rate simply by asking them for the same type of deal new borrowers are getting.

Be a Borrower Banks Love

If you want to negotiate lower rates or even refinance, you need to be someone that banks will happily lend to in the first place.

There are a number of factors that might make your loan application far more appealing than other borrowers.

This might include, only asking for a lower LVR – this means your loan is a far safer proposition.

Have a strong employment history. If you’ve been in the same job for many years and are in a permanent position, banks are going to be very happy to lend.

Lenders are assessing the risk that you are going to pay them back, so having steady employment is a key indicator for them.

You will also need to have a good credit history. A track record of payments made on time with no defaults is vital to get the best possible rates as any blemishes on your credit history will severely impact your application, let alone your negotiating power.

Walk Away

The reality is that refinancing is a real option for most borrowers and one they should strongly consider. If your bank is not prepared to budge, it might be worth looking elsewhere and walking away.

If you are a borrower that banks love and you’ve already asked for a rate cut, then you should really be looking at your options.

Your commercial mortgage broker is always going to be your first port-of-call and they will be able to quickly and easily assess your options and match you with the right type of loan and the best possible interest rate.

The days of sticking with the same lender for 30 years are long gone and it is important that all borrowers are constantly hunting for the very best deal they can find – especially when it comes to interest rates.

Why YFA?

We are very passionate about helping individuals and families to identify financial goals with the correct focus on their plans for the long run through our home loan expert. Our motto has always been “Honesty” and Over 20 years, we have always believed that understanding the customer requirement should be the first priority.

What makes us stand out from others is the utmost trust from our clients who have trusted us. Our home loan broker is always there to assist you. We have always aim to provide updated yet useful blogs by adhering to traditional values of transparency and integrity, while continuing to bring steady and consistent performance over the long term. We feel proud and blessed to win awards because of successfully assisting people to achieve financial success.

We love going beyond the bolts of financial crisis in an easier manner just to help people believe that money never blocks their happiness. Our home mortage experts try to the best of our abilities to be a sane, and trusted entity in the sector of Wealth Management via providing services in Finance & Insurance.

Credit Rep Number – 418883 | ABN – 8119516623