Here are 5 simple tips to help you reduce your home loan interest rate
The following list gives you a number of simple tips to help you reduce your home loan interest rate. This helps you pay your home loan or investment loan faster, as well as reduce the overall amount of interest you’re paying over the life of your loan.
1. Switch to Principle and Interest
Are you paying Interest Only? Changing your repayments to Principal and Interest will reduce your interest rate. Your repayment will go up but you are also going to be paying off your loan a lot faster.
2. Owner Occupiers
Have you moved into a property you originally bought as an investment?
Changing your loan type from Investment to Owner Occupied will reduce your interest rate. Lenders treat Owner Occupiers as smaller risks.
3. Negotiate With Your Current Lender
Have you contacted your bank to ask for a lower rate? Doing research on the recent loan offers is the very first thing you should do before negotiating with your lender. We can help or guide you with the rate negotiation
4. Switch Loan Products
Does your current loan product still suit your needs? We can look into different product within your lender and compare it with the offers available from other lenders.
5. Property Revaluation
Has your property increased in value since you took out your loan? Chances are it has. An updated property valuation may reveal that your Loan to Valuation Ratio (LVR) has decreased. This may move you into a lower risk bracket which comes with a lower interest rate.