5 steps to a better mortgage

If you’ve been in the same mortgage for a while, chances are there could be a better product with a lower interest rate on the market.  And, with interest rates currently sitting at 60-year lows, now really is the perfect time to review your current home loan.

For many of us, negotiating a better mortgage deal seems like a daunting task, but it doesn’t have to be. There are a couple of easy steps that all home owners can follow to secure themselves a better mortgage.

1. Do your research

With so many different products on the market, it’s important to do your due diligence and research what options are available to you before deciding to refinance your mortgage.

2. Get to know your mortgage

Recent research shows more than half of Australia’s mortgage holders don’t know their mortgage interest rate. It’s one of the biggest financial commitments a person can make, so it’s good to know all about it.

Furthermore, the better you know your mortgage, the better placed you’ll be to not only determine which features are essential, but haggle with your lender for a better deal.

3. Investigate the associated fees

There are certain fees associated with refinancing (application fees, break fees, etc), and it pays to understand what these fees are so that you can definitely determine whether or not the cost of refinancing outweighs the benefits of doing so. Your mortgage broker can help you identify the different fees and charges and help you to determine whether or not refinancing is the right decision for you.

4. Compare lender interest rates

Before you refinance your mortgage, it’s important to compare the various interest rates being offered by Australia’s lenders. Knowing what interest rates are available in the market will give you the power you need to negotiate a sharply priced home loan. As the adage goes: knowledge is power.

5. Start the haggle process

Once you’ve taken the time to investigate your current mortgage and researched what options and interest rates are available to you, it’s time to use this ammunition with your lender.

Talk to them about your desire to refinance into a lower interest rate and if they are unwilling to budge, make it clear you’re happy to take your business elsewhere. The key is to be firm and be prepared to switch lenders if you don’t get what you want.

If you don’t feel comfortable negotiating with your current lender for a better mortgage deal, seek out the help of a professional. A mortgage broker has access to many different lenders and can bargain with each to help secure you the right deal for your needs.

Original story can be viewed here.