The rise in homebuyer interest rates is something that a lot of people are talking about. The looming question is: could it be the high rates that are stopping some people from buying their first home sooner? The general consensus is that lack of a down payment is what slows most people down the most as the interest rate doesn’t really sink in for many first time buyers until the home buyer is ready to renew for the first time. Many just want to get into the market at any cost so they take a home loan with a higher than average interest rate but if you are entering the home buyers’ market for the first time, it is important to seriously consider interest rates.
Are You Serious About Getting the Lowest Possible Interest Rate on Your Home Loan?
The interest rate you are able to qualify for will have a direct impact on the quality of the property and your ability to afford the home you want, and of course it will also impact the duration in which you have to pay off the property. Being as informed as possible will save you money and can help ensure you look as good as possible on paper so that you can qualify for a mortgage. Keep the following in mind:
- Your interest rate does not just impact the overall cost of your new home; it affects your mortgage payment, too. It is worthwhile to shop around for the best interest rate possible. Crunch the numbers to see and assess the difference.
- Try to look as good on paper as possible. One of the reasons that first time homebuyers often pay such high interest rates is because lenders are unsure about their financial stability. A stable income, some savings, and a good payment history make a big difference.
- Keep in mind that you can pay things off sooner by paying more often than monthly. Fortnightly, weekly, or other accelerated home loan payment options can save you thousands.
- You should look above and beyond your local bank when shopping for a mortgage. Talking to a mortgage broker could be a great way to get more options. Mortgage brokers in Cockburn, for instance, can help you check rates from numerous lenders as well as increase your chances of approval if you are in a lo doc or no doc scenario.
- The bigger the down payment you can come up with, the better.
- It is smart to get a pre-approval before you get your heart set on a property. Knowing what you will be approved for gives you more buying power and will lower the chances of disappointment.
Mortgage Brokers in Perth and Surrounding Areas Can Help
Do you want more information to help you as a first time homebuyer? If you want to avail of a home loan in Cockburn, Kwinana, Rockingham, Perth, or the surrounding areas, talk to Smartline Mortgage Brokers Rockingham. We would be happy to help you review your options so you can get a good interest rate for your mortgage.