If, like me, you’re always trying to save wherever you can, you probably have a few life events that are a big deal. Finding ways to save on everyday expenses is easy when you compare it to the cost of things like buying a car or a house.
Not that you have to pay for these things in one go, but the monthly payments are still important. Buying a house is something that a lot of people can’t afford to do. But even if you think you can afford it, finding the best deal isn’t always easy. If you want to make sure you get the best deal for your mortgage, try my money saving tips.
Start with a Larger Deposit
Saving a deposit for a home can take you a long time. You might have spent five or even ten years ensuring you have enough to start you off. You’re finally ready to go shopping for a mortgage. However, waiting just a bit longer and putting more money aside could get you a better deal. You could get a better interest rate and either have more to spend or borrow less from the bank. A great deposit can also help you avoid paying mortgage insurance, which lenders will often charge if it isn’t up to scratch. Try using a savings account with a higher interest rate to help you.
Compare Different Rates
Just like anything you want to save money on, getting the best mortgage is all about shopping around. There are lots of websites where you can start off doing a mortgage rate comparison. This is your first step to give you an idea of the rates that are available to you. You can enter your deposit amount, income and other factors to match you up with different lenders. You can then have a more in-depth look at each lender and what they could offer you. Some websites will allow you to contact the banks directly so that you can go straight from comparing to talking to someone.
Use a Mortgage Broker
If you need some help securing the best deal, some people decide to hire a mortgage broker. They can help you find the best mortgage using their knowledge and contacts. They’ll give you advice, and they have a duty to treat you well and help you get the most out of your mortgage. They’re independent, and they know the industry, so they’re not helping the lenders. It’s their job to be on your side and help you navigate the mortgage process.
Understand the Deal You’re Getting
Before you start negotiating, it’s important to understand what you’re looking at. Apart from understanding the basics of different mortgage types, you should consider each deal individually. For example, the initial interest rate may be attractive. But does it work out at as a better deal across the whole lending period?
You might be in a rush to get your first home, but don’t rush the process of finding a mortgage. Take your time and you’ll be able to get a better deal.