Homebuyers are getting a look in now property values have dropped in the Auckland region however shoring up the right loan is no easy task. It’s a minefield out there for home owners who need the right loan structure to benefit from the lower property values.
Negotiating the ins and outs of a property mortgage takes time and most home buyers don’t have a lot of it, so often they just chose a mortgage based on Lenders marketing whose focus is on the interest rate. Home buyers in the market for a home loan look at the rates advertised and compare what lenders are offering. The lower the interest rate, the better the deal is for them – or is it?
Lenders know interest rates are the trigger point for home buyers hence their marketing focuses solely on it. When one lender drops their rates, the others follow suit. Profits have to be made, therefore any cut in interest rates is made up somewhere else.
A low interest rate home loan with higher fees can end up costing more than a higher interest rate loan. This is where professional mortgage brokers can prove their worth to home buyers. Whether they are truly independent is not really an issue – what’s of value to homebuyers is their knowledge of lenders’ loan structures. Being in the know makes a world of difference to shoring up the right loan for your personal circumstance.
This blog article was written for PropertyBlogs by Mobilize Mail.