Debbie Shankar - 8 Apr, 2016

How to Get a Great Mortgage Deal as an ‘Ideal Borrower’

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An ‘ideal borrower’ is someone who has more than 20% equity in their property and who is considered as a ‘low risk’ to a lender. If this sounds like you, then there are lenders in the market who are not only vying for your business but who can give you a home loan rate of under 4%.

What Mortgage Deals are Available?

There is a range of deals that are available for ideal borrowers, and it pays to shop around. Borrowers who fall into the ideal category, who are seeking a better deal on their home mortgage, can secure variable home loan rates that are as low as 3.86%. Some lenders will even waiver establishment fees and offer offset and other features on their home loan packages. Other lender offers typically include cash back deals and frequent flyer bonuses.

If you want to know more about what deals are on offer, then contact eChoice. We have more than 25 lenders on our panel, and we have access to hundreds of home loan products. These lenders include major Australian banks and non-bank lenders that have been carefully selected so that you get the lowest rate and features that match your needs. So regardless of whether you’re seeking to refinance an existing mortgage, looking to borrow again or you’re a first home buyer, eChoice can compare 100s of home loan products for you and find the right home loan using state-of-the-art loan matching technology.

Negotiating a Better Deal

If you’re a long-standing and loyal customer who falls into the ideal borrower category, then you may wish to contact your existing lender and ask for a better deal. This can be done by firstly comparing your home loan to others on the market, and to then see what your lender is offering new lenders. If these home loan packages are better than what your lender is offering you, then it’s time to contact your lender and to negotiate.

When you attend your appointment with your existing lender, take any information you’ve collected with you. This will give you leverage and allow you to substantiate any claims you make the appointment. In most cases, you’ll find that your existing lender is willing to negotiate a better deal. This is attributed to the fact that they don’t want to lose you as a customer.


What Types of Home Loan Packages are Available?

According to home loan comparison sites, home loans for owner-occupiers are as low as 3.86% and as low as 4.00% for investors. But before you rush out and sign-up, it is important for you to consider the comparison rate and not just the advertised rate. Why? Well, the comparison rate gives you a realistic picture of the total cost of the home loan on offer as this includes all fees and charges.

It is also important to remember that not all banks advertise their discounted rates and that there are many other rates available if you ask. For instance, the ANZ, Commonwealth, NAB and Westpac all have a standard variable home loan rate of around 5.60% but have package deal rates as low as 4.24% on offer.

Mortgage Deal Traps to Avoid

Some home loan package deals sound enticing, but always read the fine-print and ask questions. Sure many lenders can offer you an incredibly low introductory interest rate, however, these rates will only last 12-months and then the rate will jump to a much higher rate after this time.

Refinancing costs also need to be considered before you make a move. Home loan establishment fees, home valuations and legal fees can add thousands to the cost of your home loan. You also may be charged a settlement or discharge fee on your existing home loan.

If you’re looking to change your home loan purely to get a cheaper home loan rate, then you may wish to consider asking for an offset account. This type of home loan feature can shave hundreds from the cost of your loan.

Want to know more about home loans? Then contact eChoice and find the right home loan for YOU today.

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