Buying your first home or a new property is an exciting time. Banks are advertising great rates. Choosing a bank couldn't be easier. Right?!...
Unfortunately, it’s not always as simple as it looks. For a lot of buyers, especially first home buyers, your first property may be purchased with a deposit less than 20% of the purchase price.
If borrowing more than 80% the advertised ‘special’ rates you see in the press may not apply to you. It is more likely that you will be offered the bank’s ‘standard’ rates (that are seldom advertised) and you may be subject to a Low Equity Fee or Low Equity Margin which can add a further 0.75%pa to your interest rates.
For those that have managed to save up a 20% deposit (or more) borrowing can be a lot less expensive. However, be careful not to immediately plump for the bank with the best advertised rate. Sure, it may look like a good rate but the very best rates are never advertised. These are the rates that an experienced mortgage broker sees daily, but the public don’t.
Engaging a mortgage broker gives you an advantage over the normal customer that deals direct with a bank. We know which banks to approach based on your circumstances, and we know what rates are achievable as we negotiate these each and every week.
As an example, one of the main banks is currently offering rates around 0.5%pa lower than their ‘special’ rates for the right deals. These aren’t advertised, so without a broker's’ insight knowledge you would never be aware of this.
The key to ensuring you get the best deal is to shop around - and that is where your mortgage broker can really add value. Our services are completely free, so make sure you contact us today to discuss your plans.
Brian MacLean looks into tips, ideas and strategies you can use to get ahead financially..