Tag Archives: mortgage

Canberra Mortgage Broker

Getting the Best Rates with a Canberra Mortgage Broker

When it comes to purchasing a house, studies have shown that shopping around for the best mortgage rate available to you can actually help you save a lot of money.  In fact, buyers can save an average of $1,500 by getting just one extra quote, that number ballooning up to $3,000 for an extra five quotes.  Surprisingly though, most home buyers and other refinance candidates decide to skip the shopping around part.  In fact, almost 50 percent of these people are going to simply go with the first lender that they speak with. 

Being that you are a consumer, you should always make sure that you exercise the power that has been giving to you by new technology and regulations, ultimately making your shopping much easier.  If you don’t, you can pretty much ensure that you are leaving lots of extra mortgage money on the table.  Here is how you can get the very best mortgage rate with a mortgage broker.

Negotiate Your Rates

What most people trying to purchase a home are unaware of, is that fact that using a mortgage broker is going to benefit them in the long run, as they are going to try and negotiate the very best rate for you.  With that being said, negotiating the absolute best rate is not just going to be about haggling over a few percentage points, but rather a combination of knowing the lender and being able to prove the borrower’s credit worthiness at the same time.  This is exactly what grapevinemortgages.com.au is able to do for you, as they are going to have relationships with the lenders, ultimately getting you the absolute best mortgage rate that you can get. 

How to Negotiate Your Rates

When you are using a mortgage broker to get you the best rate possible, you may wonder exactly what they are doing to get that particular rate.  To answer that question, the main thing that your mortgage broker is going to do, is to shop you around to the different lenders that they have already built a relationship with.  When they do this, they are going to get you a unique rate quote from each and every lender that they go to.  When this does happen, you are going to want to be sure that you are comparing the interest rates, the closing costs, and the points that are included into these estimates.  This will allow you to see which lenders are actually going to be giving you the most competitive costs throughout the entire life of your mortgage life.

Just remember (and your mortgage broker is going to tell you this as well), the company that is offering you the best upfront mortgage rate is not always going to be the one that ends up being the ‘cheapest’ company, as there are going to be fees, points and even closing costs that are all going to be piled on upon the closing of your new home.

mortgage

5 tips to choose a mortgage

Choosing a mortgage is one of the most important financial decisions in the life of any consumer. The reason? It is a very long-term loan, which requires a large amount of money and conditions that are sometimes not easy to understand.

To help you take the right steps before hiring a mortgage, we have selected the fundamental questions that you will have to analyze to find a good offer:

1- Decide between a fixed mortgage and a variable

As with any loan, a mortgage also involves the payment of an interest. However, in this case you can find two options among which you must choose:

Variable Mortgage: the variable interest is calculated by adding two elements: a reference index (normally, the 12-month Euribor) and a differential, which is a percentage fixed by each bank and which never changes. For example, if the 12-month Euribor was at 0.5% and the mortgage you want to ask for has a differential of 1%, the interest you would have to pay would be 1.5%. Now, the Euribor is revised.  Every month, so, depending on the level that this indicator mark, the interest to be paid may increase and decrease and, with it, the monthly payment for the mortgage.

Fixed Mortgage: As its name indicates, it is an interest that does not change throughout the life of a mortgage. Each month you will have to pay the same fee.

2- Set an appropriate return period for your circumstances

When choosing how many years you will have to repay your debt, remember that the longer the term, the lower the monthly payment will have to be, but the interest will be higher.

3- Do not lose sight of the maximum percentage you need to finance

Generally, banks do not usually grant more than 80% of the appraised value (or purchase) of the home you want to buy. That is, if the property you want to acquire costs 180,000 euros, the normal thing is that the entities do not give you more than 144,000 euros. Of course, there may be offers where that percentage is somewhat higher (or lower) and it will be necessary to take accounts to know if your proposal really fits with your economic circumstances.

4- Analyze all the commissions that you will have to pay

In addition to the expenses associated with the purchase of a home and the formalization of a mortgage, you should not forget that many offers include other additional expenses. The most common are study and opening commissions, early repayment (total and / or partial) and novation . When choosing a good mortgage, do not forget to compare all these costs to know which can be the cheapest option.

5- Examine what extra products you should contract with each mortgage

In some cases, banks may offer a lower interest when contracting some of their financial products, such as: Life Insurance, Home Insurance, Current Account or Pension Plans.

Take into account all factors, compare and calculate well the monthly cost of your future mortgage is something that is worth investing time.