In Australia today, it’s safe to say that variable interest rates are far from “standard”. Not only are we dealing with rates that seem to jump up and down between lenders, but we’re also managing variations between policies too, depending on the kind of features that you’re hoping to get alongside your home loan.
At Home Loan Cash Back, we think that it’s our duty to help would-be homeowners across Australia get a better deal on their mortgage. That’s why our expert mortgage brokers don’t just work with you when it comes to making sure that you’re choosing the best deal from the right provider, we also give you more for your money by providing you with long-term cash back for the life of your loan.
Here, we’re going to give you some key tips for making sure that you never pay more than necessary on your home loan.
1. Choose your Repayment Options Carefully
In an effort to encourage borrowers to make more interest and principal repayments (and therefore reduce their level of debt over time), lenders are now charging a higher interest rate for repayments that focus on paying off only the interest. Unless you’re paying for an interest-only mortgage as part of a broader strategy – for instance, you’re trying to build up your property portfolio – it’s worth looking at principal and interest repayments. The chances are you’ll save money with a lower interest rate, and you’ll get to pay off your loan faster.
2. Pick the Right Loan
In a response to regulators that are now imposing a 10% yearly growth limit on the investments in a lender’s loan book, lenders have started to increase the rate on investment loans. With that in mind, if you’re thinking of purchasing a property to rent out to start with, make sure that you switch your loan to owner-occupied the second you move in. Otherwise, you could be paying more interest than necessary.
3. Get Cash back on Your Loan
What better way to get more out of your mortgage than to earn cash back every time you make your monthly repayments. At Home Loan Cash Back, because we receive a rolling commission every month for the life of your mortgage, we can share the amount we earn with you on a 50/50 basis. That means that as long as you stay with us, you’re constantly earning more from your mortgage. It couldn’t be simpler than that.
4. Contribute Whatever You Can to the Purchase Price
Lately, lenders have begun to grow more conservative about their interest discounts, and now offer bigger discounts to borrowers who have larger cash deposits to offer. If you can make sure that you borrow no more than 80% of the suggested purchase price, then you might be able to get yourself a bigger discount, and therefore pay a lower rate of interest too.
5. Work with a Professional Team
While there are various factors that impact your interest rate in a home loan, working with a mortgage broker should help you to get a better experience all around. An experienced mortgage broker team, like the one here at Home Loan Cash Back, has built strong relationships with all the lenders they work with. This means that you can benefit from a range of advantages as a result, including faster processing times, superior loan structures, and more.
We not only establish your loan and help you minimize costs at the beginning. We also monitor your loan over time to ensure that you never have to pay anything more than necessary. Why not make sure you’re paying the right price for your mortgage, with Home Loan Cash Back today?