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Choosing a home loan is one of the most important financial decisions you’ll make. A difference of a few basis points on your rate can save you thousands of dollars over the life of the loan. Thus, it makes sense to compare home loan rates from various lenders to choose the best deal for financing your home.

 
Are you paying too much interest on your home loan?
 


How much should you pay on your home loan?

Australian home loan rates have been at record low rates since August 2016 when the Reserve Bank of Australia (RBA) reduced the cash rate to 1.5%. Most home loan deals throughout 2017 hovered around the 4 percent mark, but it seems that things are getting more competitive which is great news for consumers. Today, it is possible to find home loan deals starting as low as 3.46 percent pa, and, according to experts, if you are paying more than 3.70 percent pa on your home loan, you could be paying too much interest.

According to Mandeep Sodhi, HashChing CEO, the set and forget attitude could cost home borrowers thousands of dollars in interest. By being constantly on the lookout for better deals, they can potentially save a lot of money that can be used to pay off their mortgage faster or meet other life goals.

In case you are wondering, you can save over $50 each month by switching to a rate of 3.70 percent pa from 4.00 percent pa on a $300,000 loan with a 30-year term. Over the life of the loan, you could save up to $18,502.90. You can use this mortgage repayment calculator to crunch the numbers.


Negotiating a lower rate on your home loan

A straightforward way to secure a lower rate, below 3.70 percent, on your home loan is by asking your lender what you want! As the mortgage market is highly competitive at the moment, lenders don’t want to lose out on existing customers, especially those with a good payment record.

However, be warned that your lender might ask you what you have seen on the market. So, arm yourself with information on home loan products similar to yours, offered by other lenders, when you ask your lender for a price match.

Besides, you should be mentally prepared to refinance with another lender in case your existing lender does not offer you a rate you think you deserve. Once your lender knows you are ready to refinance with another mortgage provider, they know you are serious about a better deal, which might just motivate them to offer you a lower rate!


Refinancing your home loan with another lender

Simon Jeffrey, a HashChing customer, recently switched lenders, saving up to $8,000 per year. His new mortgage rate of 3.86 percent per annum is almost one percent lower than his original rate, bringing down his repayments to $490 from $800 a week.

Simon had a home loan and a personal loan with the same lender. He wanted to merge the two lines to save money, but his bank refused to help him. However, Simon did not give up. He got in touch with a mortgage broker at HashChing who helped him secure a competitive home loan deal, saving him more than $300 a month.

Today, Simon is pocketing huge savings because he cared to check on his home loan and see how it stacked up against the rates provided by other lenders. As a homeowner, you must revisit your home loan every 12 months, and, if you find yourself paying more than a figure starting with a three at present, it is time to call up your bank and ask for a discount.

And, if your home loan provider refuses to price match, it might be the right time to review your options and refinance with another lender.


Refinancing is easy!

If you plan to switch lenders, start by comparing hundreds of broker pre-negotiated deals on HashChing, here. Once you provide necessary information such as the size of your loan, the value and type of property, etc., you’ll be presented with our best weekly deals for your requirement. You can compare up to three home loan deals side by side, in a single window, on the portal and get detailed information about each deal by clicking on the ‘more info’ tab at the bottom of each displayed home loan product.

Once you have located the deal that is the best-fit for you, click on the ‘Get me this deal’ button that is located on the right side of each home loan product. Now, you’d be requested to fill in your personal information (name, email and contact number) so that a mortgage broker can contact you to take your application forward.

In case you have any home loan related queries, you can post them online to have them answered by experts in a transparent manner, at no cost to you!

HashChing is Australia’s first online mortgage marketplace that allows users to compare broker-negotiated mortgage rates from over 60 lenders across Australia.

 

By Vidhu Bajaj,
HashChing Content Writer

 

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HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.

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