How To Make The Most Of Low Interest Rates

August 21, 2019

Let’s face it, your home loan is likely to be THE biggest investment and expense you will have in your life. Home loans can also be the single, biggest source of stress in our lives. Are you getting the best rate or deal for your home loan? Are there lower rates or better deals available? Should you consider refinancing your home loan?

There’s no denying it, we are currently in a phase of very low-interest rates and a hyper-competitive lending market. But it can be incredibly time-consuming to ensure you are getting the best deal available and value for your hard-earned money.

Don’t stress, there are local specialist available who will help you get the best deal in your local market. The team at Newy Finance are here to help, from a health check on your home loan to refinancing your home loan. The team are experts in home loans and refinancing. Explore the team’s comprehensive financial services at http://www.newyfinance.com.au/.

To make the most of low interest rates in today’s market, the team’s top mortgage broker tips are:

Small Changes in Interest Rates Count BIG TIME

Even a very small change in a home loan rate can really affect the amount of interest paid across the life of your home loan; either positively or negatively.

Imagine negotiating a rate that could shorten your home loan by 5 years? 10 Years? That would be an amazing accomplishment!

The team at Newy Finance hold the tools to help. The team can help you keep on top of changes in the market and make sure you have the best deal or understand how small changes such as a $20 per week increase of your repayments or a .10% decrease in your home loan rate, can significantly impact your loan.

Take Full Advantage of Low-Interest Rates

A great tip from the Newy Finance team for paying off your loan quicker is not reducing your mortgage repayments when interest rates drop. Keeping repayments at the amount you were paying at the higher interest rate could reduce the length of your loan significantly.

Another tip is to use your offset account to its full advantage. Along with low mortgage interest rates, we are also seeing very low savings interest rates. So why not swap your low savings interest rate for a more significant reward through adding the money to your home loan offset account? That bit of money you had tucked away for a raining day, why not pop it into your mortgage offset? You can call it back at any time if needed and while you won’t be earning any interest on the money (let’s face it, at the moment, that’s not a huge loss!), it can reduce the amount of interest you pay over the life of your loan and save you time and money in the long term.

Negotiate Your Interest Rate!

Today’s market is increasingly competitive, with new, online and white label mortgage providers giving the banks a real run for their money in terms of loans and interest rates. So why not use the current market to your advantage and negotiate a better interest rate? Refinancing is what the Newy Financial team do best. Or renegotiate your rate with your current lender.

Your local mortgage broker Newcastle can help you research the market. Specialists in home loans in Newcastle, refinancing in Newcastle and consolidating loans in Newcastle, the team will shop around to see what’s available.

Get in touch with Jon from Newy Finance today and see how the team can help you!