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Best Low Interest Home Loans in 2019

Best Low Interest Home Loans in 2019

For the first time in history, the Reserve Bank of Australia (RBA) has lowered cash rates to just 1.0%. While that might not mean a lot for many people – to home buyers, it could make a huge difference to your pocket.

Thanks to the lower cash rates, banks and lenders are now competing to get people signing up to their home loans. This means – we’re currently seeing home loan interest rates as low as 2.75%.

You might be a new home buyer looking to take advantage of the First Home Owners Grant. You’re an investor looking to increase your portfolio. Or you’re considering refinancing your current loan to take advantage of the lower rates. Regardless of the loan you’re after, finding a new lender today could save you thousands of dollars over the next 12 months. As long as you know what you’re looking for.

While some of the big banks are currently offering decreased interest rates, it could be the smaller lenders who will do you the most favours. Make sure you shop around, and know what to look for. Here are some tips to help you get more “bang for your buck”.

Confirm your Current Rate

Did you know that 82% of borrowers in Australia don’t actually know what their home loan rate is? If you’re in this majority, don’t worry. It’s never too late to find out what your rate is and start taking steps to pay less.

Take a look at your statement or contact your lender direct to find out what interest you’re paying on your loan. If you’re paying over 4.0%, you definitely need to consider renegotiating to a cheaper rate.

Be Attractive to Lenders

There are a few things lenders will look for when it comes to home loans, so make sure you fit the bill for your best chance. Full time work, a good credit history and the ability to afford the monthly repayments are imperative. They’ll also check to make sure you don’t have a lot of debt. Be honest in your application. You entire credit history is available when they do their background search, so it pays to be upfront.

Consider Hidden Fees

Focusing exclusively on securing the cheapest possible interest rate can be a double-edged sword as hidden fees and charges can make a seemingly low interest loan more expensive in the long run.

To combat this, we recommend finding a good balance between the two, reviewing the attached ongoing fees in comparison to the interest rate offered.

Team Up with a Good Mortgage Broker

If comparing interest rates, hidden fees and ensuring you look as attractive as possible to prospective lenders seems like a lot to take on, a good mortgage broker could be your secret weapon.

Mortgage brokers do the legwork for you by reviewing and comparing different home loan products then recommending a solution that matches your goals and budget. Plus, they have access to more home loan products than the banks.

 If your mortgage broker can find a home loan that is more attractive than your existing one, they will happily renegotiate the loan on your behalf and take care of the refinancing paperwork.

Looking for a Mortgage Broker?

Talk to Lukas Best about securing a loan that saves you more and aligns with your overall business objectives.

Lukas is all about connecting with his clients in a real way. He makes sure they have everything they need to make their property dream come true.

He isn’t your average broker. You won’t get average results with him either. He spends his time getting to know what kind of loan is likely to suit YOU best. Then he researches and tailors a solution that not only matches your budget, but also your goals.

You can contact Lukas at lbest@capitafinance.com.au or if you want to develop a better business strategy and save money in other ways, get in touch with us at general@quarles.com.au for our business advisory services.