Tips on Getting Better Home Loan Deals
Many concerns have been raised pertaining to home loans nowadays because of the stricter regulations brought by the Royal Commission into banking. Potential buyers, most especially the first-time buyers find it more difficult to get their home loans approved. I recently talked a little bit about the latest property market condition and the changes that have been happening. Recent reports say that buyers are increasingly becoming more cautious because of the requirements especially when acquiring a loan.
Experts have weighed in on this matter, and they have shared some tips on how to get a better home loan deal. Again, this may not work for everyone, but it could hopefully provide something useful for your purchase.
MAKE THAT CALL
It’s absolutely understandable if making a call to your bank is something you don’t even come close to considering. After all, who does that, really? But experts say that 8 times out of 10, people who make a call to their banks to ask for a better home loan interest rate end up getting it. A study was just recently released and it was found out that most of the time, clients that ask for a better deal actually get one. It’s important to ask first before making any assumptions about your purchase. Banks are more likely to give discounts when a better deal is demanded.
BE A GOOD BORROWER
A good borrower is more likely to get a better deal from banks. How do you know if you’re included in this category? A good borrower, according to experts is those that have stable employment. This ensures that the person has the capacity to pay for the amount borrowed. The consistency of payment is important when applying for a loan, so if a borrower’s job is unstable or there is no clear proof of steady employment, the payment would be a problem. Another one is to have at least 20 percent equity and with no outstanding credit card balances. In short, a good credit history.
ASK HELP FROM A BROKER
Brokers are trained to help you out in terms of property purchases. Studies show that often times, conversations about home loans are delegated to brokers because they know how to cut a better deal. If you’re one of those people who doesn’t feel too comfortable or confident asking for a discount, you could definitely use a broker’s help. Brokers try their best to know the important things on your behalf. They are also the best people to manage the paperwork and all that is needed to get a better home loan deal. Who knows, maybe they could even get a bank to allow you to pay lower than you expected.
INFORMATION IS KEY
I have mentioned this before, but knowing the property market condition and the rates that could be made available for you will help you so much. For instance, experts say that using a rival bank’s offer could get the attention of another bank you are looking into borrowing from. Lenders are more likely to counter this offer and even give some incentives. Others try another strategy wherein they would threaten to change banks if they don’t offer a better deal, and many times it would work out in their advantage.
The secret is to be smart. Weigh your options. Do not just settle for something if you have not tried everything. You’ll be surprised by the outcome.