Don’t pay too much on your Mortgage!

Don’t pay too much on your Mortgage!

Tips for making sure your mortgage deal is the best available

Interest rates are rising, property values falling and people like you are feeling the pinch. Some are stressed and even panicking and others are definitely feeling trapped by their mortgage or investment loan.

In this article, we’ve asked our senior mortgage advisers- Grace and Dario – for some tips to help you. 

Before we start, take a deep breath. You can take back control. Finwell Group can help.

1. Loyalty doesn’t exist – we think it is important to realise that the big banks don’t really have any loyalty to you, so don’t feel like you have to be loyal to them. In our experience, people that keep their loan with the same bank that they have their savings accounts with are usually paying too much. The same pattern goes for people who just passively accept interest rate changes, and don’t regularly look to the market to see if they are on the best deal.
2. Ask and you’ll receive – a simple tip before you speak to a broker, or anyone else is to simply go to your bank and ask that they reduce your mortgage rate, on the threat of taking your business elsewhere. We’ve seen many instances where clients can get an immediate reduction without even having to do any paperwork. Once you have the reduced rate let us know so we can then go and do our magic and further reduce this rate and investigate even better offers in the market for you.
3. Reputable is best – our advice is to steer clear of the 3rd tier and online lenders and stick with the reputable lenders – or as we call them – 1st and second tier.  Our experience is that people who get drawn in by seemingly amazing low-interest offers from these online lenders is they very quickly increase the rate as soon as they’ve captured you as a client. There are enough opportunities with switching from one major lender to another to ensure you get a better deal without risking the ploys of smaller lenders. At Finwell we only deal with reputable lenders.
4. The market is competitive – all the big banks and the other 2nd-tier lenders have offers on the table at the moment. These can be honeymoon rates, and even some pretty substantial cash-back offers to switch to them. So don’t for a minute believe that rising rates mean that there aren’t better deals for you in the market.
5. Be Active – it is important to be active in the market. If you haven’t reviewed your rates for a while, it makes sense to do so, because our experience shows that people who are passive are paying more. We’re achieving some good cash-back and rate deals for our clients. But every day you wait is another day that your current lender is potentially making to much profit from your business. 

Your individual circumstances are going to be the biggest factor in what deal we can do for you. Rising rates mean that your affordability may have changed. But there is absolutely no harm in checking the market to see what you can do.

The process of submitting your application to the market is usually 3-4 weeks from when you get us the financial information we need. So it doesn’t take too long to realise a better deal if you qualify. Don’t pay too much on your Mortgage!

Give the team at Finwell Group a call and let us see how we can help you put some more money back in your pocket, and help you feel better too. Email us on better@finwellgroup.com.au or call (03) 9017 3235 to book a no-obligation appointment now. 

The information in this article is general in nature and does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.