How To Find The Best Home Loan Rate In 2020 (Australia) - YouTube

Sarah: 2020 has arrived, so how do you make sure you're on the best interest rate this

new year?

Hi guys, it's Sarah from Lendi, Australia's number one online home loan platform, where

we've already helped thousands of Australians refinance or purchase a new property, making

sure they're on the best rate possible.

Watch this video where we've rounded up seven key tips to securing a low rate and a top

home loan deal in 2020.

Sarah: Now, before we start, if you want great home loan tips in Australia, please subscribe

to our channel and don't forget to hit the bell to be notified when we upload new videos.

Number one, ditch your set and forget approach.

One of the huge revelations of the last couple of years is that borrower loyalty does not

pay off.

Numerous studies have shown that borrowers who have a set and forget approach will pay

a lot more interest over the course of their loan.

For example, borrowers who use Lendi to refinance their home loans saved an average of $2,299

within the first 12 months of a reduction of 51 basis points*.

Smart aussie homeowners are regularly researching the market and comparing their interest rates

with other lenders.

And when it makes sense, they might refinance to improve their financial situation.

Number two, consider all lenders, big and small.

There are a lot more lenders and loan options available in the market in 2020 even compared

to five years ago, which is great news for borrowers.

As each new online lender or neo bank enters the market, competition for customers becomes

more fierce.

Sarah: Following three RBA cash rate cuts in 2019, all lenders are offering lower interest

rates across the market.

It's worth considering all of your options.

Smaller banks may be able to offer lower interest rates as they don't need to fund smaller bank

branches.

On the flip side, larger lenders may have a larger range of loan products for you to

choose from.

The point is, the more choice results in a better chance of you finding a loan that fits

your needs.

Number three, compare the interest rates online.

The quickest and most convenient way for you to find the best rates is for you to jump

online.

Comparison sites are a good place to start as they give you a good understanding of the

breadth of the market and which rates are competitive.

It's important to remember however, that comparison sites will simply show you what's available

and often aren't able to take into account your personal circumstances, which will impact

the eligibility.

Sarah: Number four, check your credit rating.

Lenders want to know that borrowers that they lend money to are reliable and good at paying

their debts.

If you have a less than stellar credit rating, it's worth working on it over the next couple

of months.

This will give you the best chance at securing a low interest rate and saving extra dollars

over the course of your loan.

For more information on how your credit score may impact your home loan, check out our video

using the link.

Sarah: Number five, lower your loan to value ratio, your LVR.

Whether you're planning or purchasing a property or refinancing your existing home loan, a

lower LVR can help strengthen your overall profile and secure a lower interest rate with

lenders.

Now if you're buying, that means that you'll need to grow your deposit as much as possible.

Lenders typically charge LMI, Lenders Mortgage Insurance, for loan applications above 80%.

So it will always pay to keep your deposit at 20% or above.

If you're looking to refinance, you can lower your LVR by building more equity and making

extra repayments.

Again, for more information on LVR and tips for lowering your LVR, check out our video

using the link.

Sarah: Number six, be the borrower that banks want to lend to.

You give yourself the best chance at getting the lowest rate by being the perfect borrower.

That means ensuring you have a clean credit file, stable employment, evidence of savings,

and no extravagant expenses.

Like any credit provider, banks want to know that you can comfortably afford your loan,

so they'll review your expenses to ensure that you're not overstretching yourself.

Number seven, negotiate with your lender.

If your lender is offering a lower rate to new customers, call them up and negotiate.

Ask them to give you the same rate that they give their new customers.

If they're unwilling to budge there's nothing stopping you from switching to another lender

that has a better home loan deal.

Mortgages last for 25 to 30 years, so even half a percent in a reduction in your interest

rate will make a big difference.

Sarah: If you're looking for more tips on how to negotiate a lower interest rate, you

can check out our video using the link.

So there you have it.

Seven ways to get a better home loan rate in 2020.

If you think your home loan rate might be out of date, and you want to see what you

might be eligible for, you can jump onto lendi.com.au.

Now, if you're looking for more tips, you can join our Home Loan Hacks Australia Facebook

group, where we answer all things home loans.

And if you found this video helpful, please give us a thumbs up and if you have any questions,

leave them in the comments section below.

Finally, if you want more information on other relevant home loan topics, you can check out

our videos here.

See you next time.