How to Get the Lowest Interest Rate for Your New Home Loan
NAB offers some of the lowest interest rates for new home loans. However, if you want to get the lowest possible home loan rate, there are a few steps that you can take.
Save Up for a Large Down Payment
A large down payment can help you get a lower interest rate and decrease your monthly payments. Unfortunately, not everyone has the funds for a down payment. Money Smart has some detailed advice on getting finance for your home.
If you have just started to think about getting a home loan, you should start saving immediately. It may be months before you need to finalise the terms of a loan. This gives you time to start saving up for a more substantial down payment.
Improve Your Credit Standings
If you have bad credit, you will probably receive a higher interest rate. A more substantial down payment may help offset some of the risks, allowing lenders to provide you with a lower interest rate. However, the best way to deal with this issue is to improve your credit standing.
Before applying for a NAB home loan, you may want to start paying off your previous debt. Start with your smaller debts and work your way up to your bigger loans.
Provide Details of Your Employment
Your income level can impact the terms of your loan. If you have a stable income, you are more likely to get favourable terms than a part-time worker or a freelancer. Providing details of your employment may help you get a lower interest rate.
Choose a Shorter Loan Term Length
Interest rates offered by NAB and other lenders change frequently. Depending on the current interest rates, you may get better terms by choosing a shorter loan length. Instead of a 30-year loan, you may get a lower interest rate with a 20-year loan. However, this is not always the case.
Before you apply for a loan, you should use a home loan calculator to compare the difference between term lengths. You may find that you can get much better offers with a short-term loan.
Apply for a Home Loan from NAB
If you want to get the lowest interest rate for your home loan, you should consider applying online for a NAB home loan. In the past year, over 35,000 people have found a loan from NAB. According to Lendi Fifty-seven per cent of these customers received a 3.69% interest rate for their loan.
Applying online may help you get a favourable interest rate for your home loan. To learn more about these rates, begin comparing the average interest rate for a NAB loan to the average interest rates from other lenders.
When you are planning to purchase a home, you will likely need to obtain a home loan. The interest rate can significantly impact your monthly repayments, along with the total amount that you pay over the life of the loan. If you want the best value, you should take steps to improve your credit score and increase the likelihood of getting a low-interest rate.
For more information, contact a home loan specialist or begin the online application process.