Home' Snap Shot Magazine : March 2012 Contents snapshot magazine snapshot.realviewtechnologies.com march 2012 | 31
WORDS JACKIE MEYERS
Saving money on your mortgage could be as
simple as approaching your lending authority for
a lower interest rate.
This is the advice of mortgage broker Liz Wilson of
Wilson Financial. Ms Wilson encourages people to do
their homework to find out what interest rate they
could get for their home loan.
"It is also important first to know what rate of
interest you are already being charged on a loan. It is
surprising how many people don't know this detail."
Ms Wilson said that if a person learned that they
were paying a higher rate than that offered by another
lending authority, they should look at renegotiating the
rate on their existing loan.
"For example I know of a bank that is currently
charging 6.44% per cent variable for loans over
$250,000 and 6.39% per cent for loans above
$500,000," she said.
"If a person is paying a higher interest on their
home loan then they could use these alternative
options to negotiate a lower interest rate."
Ms Wilson said that lending authorities didn't want
to lose customers, but with the elimination of break-
out fees it was easier for customers to move on.
"This can be costly for banks especially if clients
have been with them for only a few years," she said.
"It costs nothing to research and learn about better
deals and it costs nothing to quote these better deals in
an effort to reduce your interest rate on a home loan -
you could by surprised by the outcome.
"It's as simple as picking up the phone for a better
rate and the best way to secure a reduction is to quote
another bank's lower rate.
"If you can't negotiate a better rate then it could be
time to consider refinancing."
A discount of 0.5 per cent on a $250,000 loan is
equal to a saving of $104/month.
Mrs Wilson said first home buyers could
improve their chance of securing a loan and a
good rate through a good "existing relationship"
with their bank.
"Lending authorities tend to reward loyalty,"
she said. However, she warned that it was
important for anyone looking for a loan to
ensure that they had a good credit rating and
good repayment conduct on current accounts.
"Lenders have started credit scoring heavily
based on a myriad of factors such as your assets
versus liabilities (which is tracked against your
age), how many individual liabilities you have,
the conduct of repayment of your existing
liabilities, your employment stability, and even
the stability of your home address, how often
you move etc," she said.
"Credit scoring has more weight than ever,"
she said. But a lower credit score doesn't necessarily
mean you won't get a loan.
Interpretation of the financial details of a person
can vary. Ms Wilson specialises in seeking out the
best borrowing opportunities for clients and is well
versed in interpreting tax returns and other financial
details to negotiate the best options for clients.
or phone 1300 780 826.
Lower the interest on your loan
For your free design consultation,
call us today on
Factory & Showroom:
12 Graham Hill Road Narellan
provincial and modern polyurethane kitchens
Specialising in hand painted French
Custom designed and built kitchens handcrafted to ensure you get the finest
Links Archive February 2012 April 2012 Navigation Previous Page Next Page