Top 9 tips how to not be pushed over by your bank

In today's financial landscape, borrowers find themselves navigating a huge variety of mortgage options. Securing the right loan can be a pivotal step in achieving your home goals, and saving money in the process.

Check the available schemes or supports: A variety of different support schemes are available, particularly to first home buyers, singles or those re-entering the market. Do some top level research to see if your target lender can offer these schemes for you as they offer superior conditions and/or discounts. Also – if you believe you qualify for the scheme but you’re not being offered it – ask why, we have heard of people being told they don’t qualify just because that particular lender can’t offer that scheme.

2. Compare Offers: Don't settle for “your bank”, there’s a huge variety of bank and non-bank lenders with unique and valuable offers. Take the time to compare terms, interest rates, and fees from multiple lenders to ensure you're getting the right offer. (big hint – this is a huge part of what we do for you!)

Did you know - with the same income figures the amount of money a lender will offer you can differ by hundreds of thousands of dollars - this means an entirely different kind of home you can buy

3. The caveat to this is – protect your credit rating: making unnecessary applications has a negative impact on your credit rating & we don’t want that!

4. Read the Fine Print: Always read the loan agreement carefully before signing. Check the terms and conditions, including interest rates, repayment schedules, and any penalties or fees for early repayment. HINT: fees or interest are the same in terms of cost – and features can be money saving miracles.

5. Ask Questions: Don't hesitate to ask your lender for clarification on any aspects of the loan agreement or the process that you don't understand. This is a great time to get all of your questions satisfied

6. Avoid the loyalty tax: Once you’ve settled into your home - and your loan – be aware of what we call “rate creep”, little increases in interest rates or reductions in discounts that happen without any kind of noise or fanfare. This can amount to serious money over time and to avoid this we recommend checking your current interest rate every 6 to 12 months.

7. Protect Your Credit Score: Stay vigilant about maintaining a good credit score, as it can significantly impact your ability to secure favourable alternative loan terms when you need it. Banks are also reluctant to offer discounts to anyone who has an imperfect repayment history and this may mean you’re unnecessarily paying loyalty tax. Make timely payments, keep credit card balances low, and monitor your credit report regularly for any discrepancies.

8. Beware of Unsolicited Offers: Be cautious when approached by lenders offering unsolicited loan products. Research the legitimacy of the lender and carefully scrutinize the terms of the offer before proceeding – scammers are rife and no one wants to be their victim.

9. Seek Professional Advice: If all of this is overwhelming, the good news is there is a professional service available to navigate this complexity for you, compare offers simply, ensure you don’t miss out on any benefits or steps of the process, educate you on how to get the most from your loan and stay in touch to help you avoid the loyalty tax – and all without charging a fee! Mortgage brokers are your true advocates in the process, guiding & holding your hand the whole way. (Hint: we have the best job in the whole world!

By implementing these 9 tips, you can safeguard yourself against potential exploitation by lenders and ensure that your borrowing experience is both financially sound and empowering. Remember, being an informed and proactive borrower is key to protecting your financial well-being and saving plenty of that hard earned cash in the process.