Previously I have discussed the concept of a ‘safe borrower’ and how that can lead to lower interest rates and a better home loan for you.

Ask yourself these 3 questions:

  1. Do you have a perfect repayment history on your existing home loan for at least the last 6 months?
  2. Do you owe less than 75% of the value of your home — the lower the better (e.g., less than $375,000 on a home valued at $500,000)?
  3. Have you been working for the same employer for at least 1 year or have you been in continuous employment or self-employed for 2 years in the same industry?

If you answered ‘Yes’ to all these questions, the banks consider you a very low risk customer. If so, you shouldn’t be paying the same interest rate as an unproven borrower. A mortgage broker can help you discover your better options,