A recent report published on the ANZ website enumerates some of the top tips to keep in mind while negotiating a deal for your home mortgage. Negotiation is a skill, so it helps to know your position before going to the table with your potential lender. The report emphasizes that it is up to the home buyer to determine the “value for money” of the property you are buying, so this should give you an idea of how much give you have in negotiating your home mortgage.
It would also help to keep the following in mind:
- Auction contract terms are negotiable. They are not set in stone, so keep in mind what you want when considering loan periods, deposit amount, payment methods, and other conditions. The terms can be reviewed and negotiated before they are signed and exchanged at auction.
- Be open-minded about counter-offers. Not getting everything you want is the essence of compromise, so promise to consider any changes in the terms. Be mindful that the turf you are giving up may lead to more benefits than costs over the long term.
- Always be transparent. Trust is a key element in negotiations so it is always beneficial to be above board about all your declarations.
- Make sure you and your partner are on the same page about the property in question. If either of you has misgivings about the home or the mortgage conditions, it’s time to reconsider.
- Don’t hold back if you think it’s the right fit already. Be confident in going after what you want.
Remember though, that not all negotiations end in success, so if the current one falls through you can always find another mortgage to suit your specific requirements.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan