If you are planning on buying a home or investment property soon, you would no doubt be concerning yourself with talk of interest rates. Perhaps you are anxious that a higher rate may affect your ability to buy the home you want. But just how important are interest rates, and how closely should you follow them as you embark on your home buying journey?
Whilst many of us assume that interest rates and fees are the most important things to consider when selecting a mortgage, in reality the difference in rates is often minimal and will not have a hugely significant impact on your monthly repayments.
Whilst understandably, your rate and monthly repayment play a large role in deciding which lender you choose, it is essential to consider other factors which will affect your “borrowing power” when arranging (or refinancing) a home loan.
That is where we come in. As your mortgage broker, we look at the level of service a lender can provide you. Efficiency, speed of the process and customer service are big deciding factors for our team of mortgage brokers in North Sydney. Having your settlement be delayed, and being forced to pay penalty rates to your vendor may ultimately be more detrimental than paying a fraction of a point in rates.
Additionally, we will compare specific lender policies regarding valuation amounts, property types and post code locations (all of which affect where you can purchase and how much you can borrow.
Have you also considered an offset account? Ask yourself whether you mind paying an annual fee. These things can be just as important as finding a low rate (which will often fluctuate) whilst the features and benefits of your loan are less fluid.
I can’t stress enough the need to find a broker who will help you to uncover all of your individual needs and requirements – be that financial, or lifestyle. Once we fully understand your circumstances, then we can start talking about rates and fees in a better context.