5 expert tips for finding the best home loan rate
Discover how to find the best home loan rates on the market with Joust.
Do you have the best home loan rate for your needs? Maybe you’re looking for a loan to buy property, or maybe you’re concerned you’re paying more than you should be. Either way, it’s important to always review your home loan rate to see how it compares to what’s on the market.
At Joust, we’re the experts when it comes to finding the best home loan rates on the market. Read on to see our top five tips for getting the best value out of your home loan.
Tip #1: Focus on the comparison rate
When comparing home loans, you might notice you’ll be presented with an advertised rate and a comparison rate by your lender — but it’s the comparison rate you want to stay focused on.
- Advertised rate: This rate is what you’ll have to pay back for your mortgage each month. But it will only show you the value you pay for the interest.
- Comparison rate: This rate takes into consideration any monthly or annual fees and charges associated with the home loan package you’re being offered, presenting you with your ‘total effective rate’.
Be sure to stay focused on this comparison rate so you can make sure you are getting the best home loan rate.
Tip #2: Look for home loans without fees
Many credit providers charge monthly or annual fees in exchange for them looking after your home loan account. These fees increase your monthly repayments and are usually in exchange for a number of features that come packaged with your home loan.
However, it's possible to get these features without having to pay the monthly or annual fees and over the entirety of your loan, you can save a significant amount of money. When looking for a home loan, it's wise to look for options that don't involve monthly or annual fees.
Tip #3: Understand the difference between Variable and Fixed Rates
There are two broad types of home loans that lenders offer:
- Fixed interest rate loans: A fixed-rate home loan means you’ll pay the bank exactly the same amount every month and your interest rate will not change for the fixed-rate period.
- Variable interest rate loans: Variable rate home loans may change several times over the loan lifetime. If the interest rate goes up, you’ll be paying more, but if rates go down, then you’ll pay less interest.
It’s important to understand the difference between these two rates, as they can have a significant impact on your home loan repayments and costs. Take some time to determine which of these two options will work best for you and your situation.
Tip #4: Don’t hesitate to switch home loans now
It’s important to remember you can move your home loan to another lender to get a better rate. A lot of people don’t do this because they think they can’t, or they think it’ll be too much of a hassle.
However, if you can get a better rate at a different credit provider, then it could be worth your time and money in the long run. It’s becoming increasingly easier to switch home loan providers, but before you do, check the fees your current provider will charge for discharging your home loan.
Interest rate break costs only apply to fixed-rate loans. The costs associated with discharging variable rate loans are typically between $300-$500. You should be able to find more information about this in your original mortgage agreement.
Tip #5: Use a home loan calculator
Our home loan calculator can help you uncover the potential savings you’ll make over the long term. Simply click here to get started.
At Joust, we’ve made it our business to help you find the best home loan rate. We use your basic information to entice lenders to fight over you and bid with some of the best home loan rates available, making sure you end up with maximum competitive tension and a potentially lower rate than what your current bank has provided.
See what Joust has to offer you here.