With the home loan interest rates offered on Australian mortgages continuing to fluctuate, it is becoming more and more of a challenge to get a home loan rate that is affordable. Many potential borrowers are faced with the dilemma of taking out a loan that may be affordable today, but no so affordable in the long run. Since homeownership is a long-term commitment, it's important that your home loan rate be one that you can afford for the entire term of your loan. While no borrower can control the interest rates at which lenders choose to offer home loans, there are ways in which you can secure a home loan rate that is equitable for you.
Make a specific list
One mistake that many people make when shopping for home loans is failure to narrow down what type of loan that they need. Now it's understandable that most people will require the assistance of a professional broker or mortgage lender in order to pinpoint what type of loan they need, but even before getting to this stage you should have a list that at the least includes:
� Why you are in need of a loan
� How much you intend to borrow
� What rates you'd ideally like to pay
� How long you plan on being in the home
Having even some idea of what you want, makes finding a home loan rate that is right for you much easier.
Ask for what you want and make sure you are qualified to do so
Many people are intimidated by the home loan process and as a result are shy or afraid to negotiate for what they really want. And it's unfortunate, because Australian lenders are in fact willing to negotiate, if you are qualified to do so. Having solid credentials in the following areas is a great way to build on your ability to negotiate you home loan interest rate:
� Income-Demonstrate stable and strong income for at least the last 2 years.
� Your credit- The less debt you have, the better. But if you do have debt, make sure you pay it on time or have paid it off all together.
� Your down payment- The more money you can pay out of pocket, the less you'll need to borrow, which makes you a desirable borrower in the bank's eyes.
Don't be afraid to shop around
Comparison shopping is one of the best ways to get a fair home loan interest rate. The mortgage business is competitive and lenders are all vying for your business. But if you don't shop around then you'll never know whether or not you in fact received the best interest rate that is available.
Don't cheat yourself out a competitive interest rate, call Choice Home Loans today.
by Marcus Brady
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