- Shop Around
While your mortgage broker can help you find a great deal, it’s still important to shop around and compare rates from different lenders. Make sure you’re getting the best possible deal by doing your own research and comparing rates and fees from multiple lenders.
- Consider Your Loan Structure
The structure of your home loan can have a big impact on your savings over time. Consider whether a fixed rate, variable rate, or split rate home loan is right for you, and whether you want to pay off your loan faster with a shorter loan term.
- Negotiate with Your Broker
Don’t be afraid to negotiate with your mortgage broker to get the best possible deal. Ask about any special promotions or discounts that may be available, and be upfront about your budget and financial goals.
- Use Your Equity Wisely
If you’re refinancing or buying a new home, you may have equity in your current property that you can use as a deposit or to pay down your home loan. Make sure to use your equity wisely and consider the long-term impact of using your equity to fund your home purchase.
- Choose the Right Repayment Frequency
The frequency of your home loan repayments can also impact your savings over time. Consider whether weekly or fortnightly repayments are right for you, and whether you want to make extra repayments to pay off your loan faster.
- Consider Offset Accounts
An offset account is a savings account linked to your home loan that can help reduce the interest you pay on your home loan. Consider whether an offset account is right for you, and talk to your broker about whether this is an option for your home loan.
- Be Prepared for Additional Costs
In addition to the cost of your home loan, there are other costs associated with buying a home in Australia, such as stamp duty, legal fees, and inspection costs. Make sure to budget for these additional costs and factor them into your overall financial plan.
- Stay Up-to-Date on Your Home Loan
Make sure to stay up-to-date on your home loan and regularly review your interest rate and loan structure. This can help you identify opportunities to save money over time and ensure that you’re always getting the best possible deal.