If you’ve been researching, then you know that interest rates have now become anything but standard. They vary between lenders, and they can also vary within a lender as well. This depends on the particular features you’d like as part of the home loan.

In this article, we’ll look at some tips to ensure that you don’t get caught out spending more interest than what is necessary.

Select your repayment type wisely. Many lenders, in a quest to encourage more borrowers to make principal and interest repayments while actively reducing their debt over time, are currently charging higher interest rates for those who prefer interest-only repayments.

You are likely to save your hard-earned property money by switching to principal and interest repayments, unless you are looking to pay interest-only on your owner-occupied loan as part of another strategy. Aside from saving more money, principal and interest repayments will give you are duced interest rate and you’re also likely to pay your loan off quicker.

Make sure you pick the right loan. Lenders increased the rate on investment loans in response to regulators who enforced a 10 per cent yearly growth limit on a lender’s investment loan book,

If you’re looking topurchase a property with goals to rent it out initially, ensure that you switch to owner-occupied loan after you move in. If not, you’ll pay a higher rate of interest than necessary.

Select your repayment type wisely. Many lenders, in a quest to encourage more borrowers to make principal and interest repayments while actively reducing their debt over time, are currently charging higher interest rates for those who prefer interest-only repayments.

Give as much as possible to the purchase price. Lenders have evolved to become more conservative with their interest discounts. Because of this, they tend to offer better discounts to borrowers with larger cash deposits a strong equity position.

If it’s possible for you to borrow no more than 80 per cent of the purchase price via saving a bigger deposit or getting assistance from family via a security guarantee, you will have a higher chance to secure a bigger pricing discount, which will benefit you with a lower rate of interest.

Consider other factors. Of course, there are multiple factors that will affect your interest rate, and your selection of mortgage professional also has a lot to do with it.

Experienced mortgage professional generally have strong relationships with the lenders they work or are employed with. Because of this, you can get the benefit of increased rate discounts, quicker processing times, plus superior loan structures.

Not only will an experienced team establish your loan to reduce costs but, as your personal circumstances change over time, they can be tasked to monitor your loan to make sure you don’t ever pay more than what is necessary.

An experienced team can also continue to share knowledge and expertise so you can find out new and better ways to better manage your mortgage. You can learn more about the latest home loan interest rates from top mortgage providers like Newcastle Permanent, who regularly update and give the best rates both for new homebuyers and seasoned real estate investors.

End Note

That’s about it. We’re sure that you’re currently looking at your home purchase and mortgage type options. Words of advice – don’t do it alone. A property specialist can help you gain the most out of your home investment journey. Best of luck!

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