These days it’s common knowledge that banks give new customers lower interest rates than existing customers.
So what can you do about it? If your current bank won’t give you the lowest rate, it’s time to change banks.
Here are the top 3 tips to get a better deal on your home loan.
Tip 1 – Comparison Rate
A useful guide is the comparison rate that all lenders are required by government legislation to provide. But keep in mind that it is only a starting point. Even though it includes the basic loan costs, such as set-up fees, interest rates and ongoing charges, it does not include bank fees that are only charged in certain circumstances.
Tip 2 – Loan Flexibility
But there is more to a loan than the interest rate and the fees and charges. One of the most important things to consider is the loan’s flexibility. You might believe that a no-frills loan with low fees is perfect for you right now because your affairs are simple and your present intentions are to stay in the one house for many years, but keep in mind that change is always with us, and your present loan may not be appropriate if things change.
Tip 3 – Independent Advice
If you decide to use a broker, make sure they can offer you the choice of many different lenders. Most independent Brokers will have around 30 different lenders, and they will recommend the best three lenders for you to choose from.
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