How to Get the Best Deal on your Home Loan

  • Posted 10 Nov
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How to Get the Best Deal on your Home Loan

So you’ve worked hard and saved well, and you’re thinking about taking the leap into home ownership. You’ve looked into what type of mortgage you may qualify for, and are now ready to delve further into the sometimes-confusing world of home finance.

Here are a couple things to consider that will help you get the best mortgage deal you can.

1. Interest Rate

When it comes to home finance, the most important thing is to get the best interest rate on your mortgage. Every lender prices in a different way, and they will generally cut interest rates when business is slow.

However, even when the market is hot, your mortgage broker can negotiate with different lenders to get you a lower interest rate.

These are called Negotiated Interest Rate Discounts.

Without negotiation with lenders, you can still generally get discounts of up to 0.7%.  But, most home finance brokers can negotiate to get even lower interest rates. Usually, the higher the loan amount, the more they can lower the interest rate.

For example, for a loan of $250,000 and over you may be able to get a negotiated rate of 1.00%, below the Bank Standard Variable Rate (BSV), and for a loan of $1,000,000, 1.10% below the BSV.

2. Home Loans for Professionals

There are certain professions that lenders prefer to lend to. Banks monitor which professions are the least risky; those that always pay on time, and generally do not default on their mortgage.

If you are in one of the following professions, you may be at an advantage when it comes to getting a great deal on your mortgage:

  • Accountants (CPA preferred) including actuaries, finance managers and auditors. If you’re an accountant, you may be able to have the Lenders Mortgage Insurance waived on your loan. This can save you a lot of money, so you do want to look into this.
  • Legal professionals including solicitors, barristers and lawyers.
  • Doctorsdentistsvetsoptometrists and pharmacists. These professions are probably the most valued by banks, as they have access to high incomes, and the lowest default rates of any profession.
  • Mining engineers including surveyors, quantity surveyors, geologists and geophysicists. If you’re one of these workers, you’re probably going to get a nice discount as well. Ask about the possibility of waiving Lenders Mortgage Insurance.

As we’ve seen, there are some important things to look for when it comes to getting the best mortgage you can.

If you’re a professional in one of the fields above, you are at an advantage. If you’re not, at least look for the lowest interest rate you can get, and know that your mortgage broker might very well be able to negotiate these rates down.

Be smart in your research on home finance, and you’ll get a great mortgage that will make your dream home even more enjoyable. Contact our friendly team to discuss your next steps.

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