Being in a position to be able to buy your first home is incredibly exciting. But what usually comes with owning a home is a home loan, and when you’ve never done it before, taking out a mortgage can be overwhelming to say the least.
Financially, you’re making the biggest commitment of your life to date. No-one gives you a handbook for what to do, so if you can use a few hacks to potentially save money on yours, you’re already a step ahead.
So Mamamia spoke to Peter Andronicos, Chief Executive Officer at home loan comparison site and mortgage brokerage eChoice, who shared with us everything we should know about taking out a mortgage and the hacks that could save you thousands.
What's the best way to negotiate a lower interest rate with your lender?
Peter says when it comes to getting the best interest rate, it pays off to do your homework.
"The best research is the research you do yourself - find out what a competitive rate looks like and be sure to check what your lender is offering to new customers as an introductory rate," Peter says.
"Let the bank know if you think you could be getting a better deal elsewhere and tell them you’ll switch to another lender if they won’t budge. You’ve got nothing to lose by asking them for a lower rate and if you’ve got facts to back you up, they’re more likely to take you seriously."
And if you’re not sure where to begin, eChoice offers an obligation-free and easy-to-use rate comparison tool, which can compare rates across more than 25 different lenders.
Should you shop your home loan with multiple banks when trying to make a decision?
When it comes to deciding on which bank you will take your mortgage out with, according to Peter, you should always shop around with banks and non-bank lenders to make sure you’re getting the very best deal on your interest rate and home loan.
"While you may be set on getting a mortgage through the bank you’ve been with for years, it’s important to do your due diligence to ensure they’re offering you a competitive rate," Peter encourages.