You could easily find yourself paying more than you should if you don’t take the time to find the right home loan. Finding a lower interest rate can cut costs that could go towards a happier retirement, or fund a child’s university education.
At 9,25% the current prime rate is still lower than the average percentage borrowers are able to secure, most only finding interest rates that are one or two percentage points above it – making a big difference for those looking to save rather than spend.
A lower rate means your monthly bond repayment will be more affordable, you’ll have a bigger savings pool and lessen your expenses throughout your bond. To be granted a bond at a good rate, you’ll need to be in financial shape, along with the aid of a great mortgage originator who will push for your application and submit it to lenders.
Dealing with your debt is vital; having a bad credit reputation will not do you any good. Ensure that you pay your bills on time, and don’t open new accounts you can’t maintain.
To cover the deposit of your home and the additional costs of purchase you will have to save some cash, bond registration and legal fees are necessary. Communicate with your bond originator and discuss how much you can afford as a bond repayment every month, and settle for a comfortable sum you should be able to borrow. Don’t forget to decide whether you’re ready to set up pre-approval at a beneficial interest rate. After this, house hunting will be a more comfortable environment, and you should be certain that your dream home is at the best possible rate you could find.