Many property buyers would be surprised by how much interest they could save by getting the best mortgage package. It’s one of those tasks which require some research to achieve the best outcome’s, especially if you aren’t working with a mortgage broker. The Interest Rate is not the only consideration in the process. We discuss the seven steps to finding the best mortgage deal below:

1. Decide whether you want a Variable or Fixed interest mortgage or a combination. This decision will be influenced by factors such as whether you are an owner-occupier or an investor, your rate of savings, and the timeframe of your ownership. As a general guide, fixed interest, if the interest rate is lower than the variable rate, may be a compelling option. Variable rate loans provide the most flexibility and may include Offset options. Your savings ability over the fixed term, can help you to determine if a combination of fixed and variable would work for you, and how much to Fix and how much to keep Variable.
2. Decide whether you want an Interest Only or Principal and Interest mortgage. When it comes to your home, most financial advisers prefer to see their clients paying their debt down through principal and interest mortgages as the overall interest paid is lower than for interest only, and their clients end up owning their home when they are older. Interest Only can work well in Investment situations especially when accumulating assets.
3. Decide on the deposit you can put down. Bear in mind, the best mortgage rates are generally available with a higher deposit of 20% or more. Also, with a deposit of 20% or more, you will generally avoid paying lender’s mortgage insurance which can be expensive.
4. With the loan structure in mind, compare mortgage rates using mortgage comparison websites such as Canstar, Finder, Mozo and RateCity. These websites are time-savers when it comes to doing the initial market research.
5. Focus on the Comparison Rate rather than the headline rate as it factors in all ongoing fees and charges.
6. If you have funds available or savings capacity, focus on loans with a mortgage offset account as this represents one of the most under-appreciated ways to greatly reduce the interest you pay.
7. Decide based on matching all of your circumstances to the best mortgage deal on the market, not just the lowest rate.

Landen’s Director Jim Dionysatos believes property buyers should spend time researching the best mortgage structure and deals through the above steps: ‘For our property buyers who prefer to find their mortgage without a broker’s help, there’s more information available now than ever before thanks to mortgage comparison websites. With a little knowledge and legwork, it’s a great time to use that information to your advantage to find a great mortgage deal.’