Because of the COVID-19 pandemic, we have seen mortgage rates hit historic lows all around the globe. Australia is no exception.
Today, many Australians are seeing what a 0.5% difference can make in a mortgage interest rate. Even with a small change, you can save thousands of dollars.
However, some banks have already raised house loan interest rates, and economists estimate that rates will rise higher in 2023 due to the changes in the official cash rate by the Reserve Bank of Australia. As such, if you're a homeowner who hasn't checked your interest rate in a while, or if you're thinking about buying a home soon, you should keep an eye on interest rates.
Read on to discover how to get low interest mortgage rates in Australia today.
Keep Yourself Updated
Compare lender interest rates to find a low rate. It is critical to keep track of interest rates. Checking the market's interest rates on a regular basis can save you money by allowing you to switch to a lower rate.
Bargain, Bargain, Bargain
If you've had a long relationship with the same lender, you're probably paying a loyalty tax in the form of a higher interest rate than new customers. Compare your interest rate to what your lender is offering to new borrowers.
If you are paying a higher interest rate, ask your lender to lower it. If you are a loyal customer and can show that market rates are lower, your lender may drop your interest rate.
Be a Low-Risk Borrower
You should evaluate your financial status before applying for a low-interest home loan or refinancing to save on interest. Lenders are more ready to provide consumers with low-risk, low-interest rates.
Reduce risk and increase your chances of getting a low-interest rate by paying credit cards and bills on time to establish credit, saving regularly and making on-time mortgage payments, repaying debts and credit cards, being thrifty, and maintaining stable and well-paid work.
Study Additional Mortgage Costs and Features
Low-interest rates are critical, but they are not the only ones. Consider startup costs, Lenders Mortgage Insurance (LMI), and fees for a drawdown account or offset account.
When considering home loans, it is critical to consider aspects other than the interest rate. Consider whether you want an offset account, access to additional payments, and term lengths. By properly assessing yourself, you will be able to analyse a mortgage holistically.
Save Money by Refinancing
If you are unable to reach an agreement with your lender, you should consider looking elsewhere. Analysts forecast that interest rates will rise faster than expected in 2022, so it may be time to refinance and lock in a cheaper rate.
Fixed-rate mortgages can help to keep interest rates from rising. Fixed maturities ranging from one to five years are available, ensuring that your interest rate does not change. Take into account that fixed interest rates provide less flexibility than variable interest rates.
By now, you must get to work and check if your mortgage interest rate is still competitive. Use an online comparison tool to keep track of changing prices from the comfort of your couch. This makes searching for interest rates on the Internet easier. In any case, know that seeking the assistance of a loan professional can help you achieve a reasonable interest rate for refinancing or acquiring a property.