There are two things that you simply need to take care of at all times (outside of family, of course). One is time, and the other is money. When it comes to your mortgage, there are a couple of tricks that can help save you money.
If you are considering switching mortgage lenders at renewal, are a new buyer looking for a great deal, or still saving for your down payment, here are some tips that can help you get what you need.
Compare rates
One of the fastest ways to look for the best deals is to use online comparison sites. They will pull off the information that you need and collate it to match your circumstances.
You can take the top three options and look at the fine print. It is also worth noting that some comparison websites will add an advert within the options. These are paid placements – and they might not even meet your criteria.
Try not to commit to any hard credit checks at the moment, as they can often impact a decision at a later date – from the mortgage adviser you want to go with.
Negotiate
You are in the market to discuss hundreds of thousands of dollars – are you going to let the ability to negotiate pass you by?
A mortgage broker can do this for you if you are uncomfortable putting pressure on a financial establishment.
During the negotiations or even the first discussions, you can say you are looking for the lowest possible rates (and some from other lenders on the table). What other products can then be combined into the package?
For example, if you are required to take life insurance or other insurances out, see if a deal can be made with lower interest and add on more package options.
The real point here is never to take the first offer.
Pay it down faster
Paying your mortgage off faster can feel like a giant leap, and if you aren’t careful, there can be a sting in the tail when you manage to get to that payment.
It’s not uncommon for fees to pay if you pay your mortgage off more quickly than the agreement. Essentially the bank will still want to collect what they would’ve been entitled to in terms of interest and charges.
However, you can set the payment frequency to every two weeks, and you squeeze in an extra two payments a year – within the agreement of your mortgage.
You can discuss with the bank that you wish to increase your payments and see if there is room to pay off a higher amount each month.
Check to see if there is a lump sum policy, and while paying your mortgage, save up money on the side to add a lump sum payment once a year.
Your mortgage is one of the most expensive commitments you will make, the more research you do, the better.
Are you in the middle of tackling your finances and getting everything in order: Check these tips out: 7 Critical Personal Finance Organization Tips