Now you are all probably aware by now that here at 360 Finance we get you the best deal in the market when it comes to your car, caravan or boat loan. However we can also help you save money on the biggest investment you will ever make… your home. Personally I have spent a large amount of my career working in the home loan side of finance and because of this have a good amount of experience and know how to bring to the conversation. So today I thought we would discuss some of the biggest myths when it comes to mortgages and what to look out for with your next home loan.
All loans are the same
While a large number of loans will share similar features, the way they operate can get quite different. Getting the right loan for your scenario can make a huge difference in your financial wellbeing. This is a great reason why speaking to our specially trained mortgage team can save you not only a lot of money but a lot of stress by matching up what your personal home loan requirements are with a loan that fits your needs.
It is unsafe to borrow outside of the big banks
Many people are under the impression that getting a loan from a non-major bank is a higher risk move then visiting one of the big boys. This is far from the case and this sort of thinking can cost you a fair chunk of change as it is often the non-majors that offer the best deals. Also the non-majors are more likely to look at your scenario if it is slightly outside of the normal lending situation. The team at 360 Finance know where to go to find you the best deal no matter who the lender.
Refinancing is overly expensive and due to exit costs is not worth it
In 2011 exit fees were banned in Australia so most mortgage holders can refinance without getting hit with hefty penalties. Also when dealing with a highly trained mortgage professional like the home loans team here at 360 Finance we will approach the bank to obtain the best deal for you to make any costs involved much more manageable. You need to look at what the costs to “break” your existing mortgage are versus the savings you will obtain from the new lender.
You will often see lenders advertising a short term discounted rate offer in order to get customers in the door. These introductory or honeymoon rates can seem very enticing as you are often getting a significant discount against the banks standard variable rate. However when the introductory period comes to an end, usually after 2 years, the rate often reverts to the standard variable product which will be the most expensive rate the lender is currently advertising. This will quickly negate the savings you had in the initial period. When looking at these offers make sure you check what rate you will revert to when the honeymoon period ends. Our home loan team will not only run you through all the figures but will also be there for you when your introductory rate ends to find another great deal for you.
If your bank won’t give you a loan no one will
Every lender has their own set of policies and criteria when it comes to lending money, often consumers will go straight to the bank that they have their everyday banking with. There are a lot of issues with this mindset, first of all most people have their everyday banking with whichever bank did school banking at their primary school (Shout out to all my Dollarmite club members) or that their parents bank with. This can be okay when it comes to your transaction account but a mortgage is a totally different investment. So you need to “play the field” a bit here, don’t get bogged down in just going to “your bank”. If the first bank doesn’t approve you that doesn’t necessarily mean you are out of the game, maybe you just didn’t fit their criteria. This is one of the main reasons why dealing with the mortgage team here at 360 Finance can be very beneficial, our team knows the policies and criteria the lenders have. This allows us to make sure you not only get the best deal but also get approved first time and thus protecting your credit file and credit score.
The best rates can be found online
Some consumers believe they can find the best rate available using a simple internet search. This however is not the case, much like with the great car loan rates a 360 Finance Broker will secure you, banks do not always advertise the best rate available. They know that most borrowers will accept the rate the lender tells them and sign on the line. 360 Finance’s mortgage team have great relationships with Australia’s best lenders and this allows us to source great home loan rates that may not be advertised online.
These mortgage myths are costing Australian’s huge amounts of money in both interest and fees every year. The average mortgage size in Australia is $443,000 and the average interest rate is 5.01% this alone tells us one thing; most people are paying way too much on their mortgage. The difference between what you are currently paying and what you should be paying can be thousands of dollars a year. Speaking with our mortgage team here at 360 Finance can result in not only a huge amount of financial savings but a large amount of stress relief too. Our team is trained to make sure the process is simple and stress free for you. So call today and get a free home loan health check from the home loan experts here at 360 Finance.