Home Loans: Strategies to Save You Some Money This 2024

Planning your future can be complicated as it requires so many things to handle and take care of. For instance, one of the most basic human necessities is having a roof over our heads. Nowadays, it’s become more challenging to achieve since the factors affecting the ability to secure a home have taken a different turn, such as prices, interest rates, and available resources. According to recent news, home loans have been at their most expensive in the last 11 years, creating a lot of anxiety for possible homeowners. The mere thought of shelling out more money than expected can automatically shake up your plans.

Is switching up lenders necessary or renegotiating a better deal with your existing one? Experts believe the situation can be remedied with enough planning and proper strategising.

Concerns from Homeowners

Australian Bureau of Statistics shows that in June of 2023, refinancing hit a record high, and within that month alone, about $22 billion worth of home loans were refinanced. On average, the home loan refinanced was worth $507,053, which is an increase of 28 percent over the course of 4 years. What was the biggest concern among all the factors mentioned? Rising borrowing costs, thus, a hunt for better deals has become rampant. Experts are seeing a trend of borrowers cutting off ties with their previous lenders, while those who choose to stay have to worry about the fixed-rate loans expiring during the second half of 2023. Because of this, renegotiations will take place.

The fast rise of interest rates since May of 2023 has left many borrowers stuck with their existing lenders. Refinancing is out of consideration for them because they simply don’t qualify.

What strategies should homeowners do to get a better deal and save significant money? Experts advise taking note of these things.

Compare Offers to Find the Best One

When you’re looking for a new lender, you will naturally need to talk to them in order to know if what they’re offering is a deal you would gladly take. It’s important to compare offers, so talk to both the existing and potential new lenders so you can have a clear understanding of the market. Study the market rates and be firm about your decision.

Talk to The Best Person for Renegotiations

When renegotiating, it’s important to talk to the right person who can answer all your questions. Ask the bank’s retention team directly instead of looking for the home loan centre personnel, as they usually have the best rates for you.

Be Proactive

Probably the biggest mistake most homeowners make is that they are more passive-aggressive than proactive when it comes to borrowing. As borrowers, it’s essential to know what you want. If you find that the offer is underwhelming the first time, don’t just go for it. Come back and do the same process after a few months.

Ask for the Same Rate for the New Customers

Typically, lenders have different rates for new customers to attract them into making a huge loan. Try to ask if the same rate they offer can be extended to you. You might be surprised to find that they would be willing to do that for you.

Try to Ask for Fee Waiver

Another way to save money is to ask if you could get your annual fee waived, especially if they won’t offer a lower rate. Anything is possible with clear and concise communication.