Prepare for your first mortgage: Insider tips to save interest and secure better rates
In this episode of the First Property Buyer Show, host Emilie Lauer sits down with mortgage broker Eva Loisance from Finni Mortgages to dissect the mortgage maze for first property buyers.
The duo starts by outlining the key loan options for first-time buyers in three main categories: basic versus package loans, variable versus fixed rates, and principal and interest versus interest-only repayments.
Eva explains that basic loans offer lower rates with fewer features, while package loans include extras like offset accounts, which can reduce the interest paid. Variable rates fluctuate with the market, while fixed rates offer stable repayments over a period.
She emphasises that being well-prepared with documentation and transparent about financial history are crucial when applying for a loan, as even a modest credit history, like responsibly managing a small credit card, can enhance borrowing opportunities.
To avoid mortgage stress, Eva encourages buyers to make small extra repayments to save on interest over the loan’s life, as being proactive with repayments can shorten the 30-year loan significantly.