Borrowing more than $300,000 – use the size of your home loan to negotiate!

If you are borrowing more than $300,000 – or with some lenders, even from $250,000, the options you have in terms of discounted interest rates and flexibility in loan terms starts to increase. The more you borrow, typically the better interest rate terms you can negotiate. Be aware also that even as higher borrowings might buy you a better interest rate, there is still no point in paying fees for options you don’t need, no matter how much you borrow. Options often relate more to your circumstance, finance structures and lifestyle than the amount of money you borrow. Always consider these carefully as well.

Major banks and secure lenders are not the same

There can be significant differences between the standard variable interest rates offered by major banks and secure lenders. Although it should never be your only consideration, choosing a lower interest rate has the potential to save you a lot of money over the term of your loan if you approach repaying it sensibly. Make sure you check with your mortgage broker exactly what rate is being offered and by who.

Get a comparison and negotiate a better deal

Your local mortgage broker can help compare different home loan products, confidentially assess your options and even help negotiate a better deal. Simply email us the form below or call at any time on 13 LOAN (13 5626) or direct on +61 2 9249 3739.

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Borrowing more than $1,000,000

If you are borrowing more than $1,000,000 talk to your X Inc mortgage broker about negotiating further discounted rates and fees. Don’t forget to outline your entire borrowings portfolio when you meet with a broker as your negotiating power may well be increased if you have other loans, assets and opportunity.

Professional packages

Traditionally, people borrowing more than $300,000 have been offered ‘Professional Packs’ by lenders. The range of professional packages on offer is very broad.  Different lenders offer different features and rates, generally according to the amount you are borrowing and the loan structure.  To find out more about what is on offer and how they work, go to our professional packages page.

Introductory, honeymoon and basic loans

If you don’t need the flexibility of a professional package or aren’t prepared to pay the extra fees, these days there are many other options that may make perfect sense for your situation – some of which are surprisingly flexible.  To find out more, talk to a local mortgage broker or go to the page that best suits your situation:

• Introductory & Honeymoon Loans
• Fixed Rate Loans
• Combination Variable – Fixed Loans
• Variable Interest Rate Loans

Equity Finance Mortgage (EFM)

If you want to buy a property that is more than you can afford, you might want to consider an Equity Finance Mortgage. An Equity Finance Mortgage (EFM) is a new type of home loan that effectively boosts your potential borrowing capacity by anything up to 25%. It has been launched in Sydney and Melbourne and at the moment is available through one lender. You can find out more about it, go to our page on Equity Finance Mortgages.