{"id":46488,"date":"2021-06-08T10:04:48","date_gmt":"2021-06-08T00:04:48","guid":{"rendered":"https:\/\/stylecurator.com.au\/?p=46488"},"modified":"2025-07-21T19:34:37","modified_gmt":"2025-07-21T09:34:37","slug":"saving-on-your-home-loan","status":"publish","type":"post","link":"https:\/\/stylecurator.com.au\/saving-on-your-home-loan\/","title":{"rendered":"Buying property? Here are 5 tips for saving on your home loan"},"content":{"rendered":"\n

Supported by Savvy<\/em><\/p>\n\n\n\n

For many Australians, buying a home is the biggest purchase they\u2019ll ever make \u2014 and most will take out a home loan to do it. That way, they can pay off their mortgage in regular increments over time, instead of having to save up the money to buy it outright.<\/p>\n\n\n\n

If you\u2019re buying your first home, upsizing or downsizing, or looking into investment properties, there are a few simple ways to save money on your home loan and keep more cash in your pocket. Here are 5 top tips for saving on your home loan.<\/p>\n\n\n\n

Related article: Considerations when buying a home, what\u2019s important?<\/a>
Related article: Colour and emotion: How to select colour for the mood you want to achieve in your home<\/a><\/strong><\/p>\n\n\n\n

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Image via The Block<\/figcaption><\/figure>\n\n\n\n

#1 Apply for the First Home Owners Grant<\/h2>\n\n\n\n

Are you a first-time homebuyer? Congratulations! You might be eligible for the First Home Owner Grant<\/a> (FHOG), a state government initiative that encourages Aussies to enter the real estate market. If you qualify for the first home buyer home loan, you\u2019ll get financial assistance to buy your first home and save thousands of dollars in duties and fees along the way.<\/p>\n\n\n\n

To apply for the first home loan deposit scheme, you\u2019ll need to be an Australian citizen or permanent resident 18 or older who hasn\u2019t owned property before. The specific criteria varies between states. For example, in QLD, you must be buying or building a new home worth $750,000 or less. When the house is ready, you must move into it within one year and live there for at least 6 months \u2014 though you can rent out a room and earn extra income. <\/p>\n\n\n\n

If you do all of that, you\u2019ll get $15,000 or $25,000 to put towards the price of the home, depending on when you signed off on your contract. You might also have access to stamp duty concessions, but a broker will be able to lay out all the ways you can save on your first home loan.<\/p>\n\n\n\n

#2 Find the best type of loan for you<\/h2>\n\n\n\n

A simple way to cut costs is by choosing the right home loan in the first place! In Australia, there is a range of home loans on offer with different payment structures and interest rates. A mortgage broker can help you to navigate and narrow down your options so you apply for a loan that suits your budget, needs and circumstances.<\/p>\n\n\n\n

Let\u2019s look at the ways lenders treat home loan interest rates as an example. With a fixed-rate loan, your interest rate is locked in at the current market rate<\/a>, and your payments stay the same for the life of the loan. On the other hand, variable rate home loans are subject to market conditions, so your repayments might go up or down. <\/p>\n\n\n\n

You can also opt for a split-rate loan, which lets you \u201cfix\u201d one portion of the loan and leave the rest as variable. By doing this, your payments will be predictable, but you\u2019ll also be able to make the most of any interest rates drops. <\/p>\n\n\n\n

There are also home loans that cater to specific groups of people. For instance, bridging loans are short-term loans that are designed to bridge the gap between selling your existing property and buying a new one, while construction loans allow you to draw from the balance to cover expenses during construction.<\/p>\n\n\n\n

The main takeaway? The lending market<\/a> is diverse, and a broker can help you find the best home loan at the lowest possible price.<\/p>\n\n\n

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Image via Savvy<\/figcaption><\/figure>\n<\/div>\n\n\n

#3 Compare home loans and offers<\/h2>\n\n\n\n

Like with most large purchases, it pays to shop around. There are so many lenders competing for your business, and our advice is to let them! It\u2019s not unusual for lenders to lower their rates to attract new customers.<\/p>\n\n\n\n

Mortgage rates, fees and features can vary from one lender to the next. Some lenders might offer low home loan interest rates, but have hefty fees so you\u2019ll pay more money overall. Some lenders might ask you to put down a deposit of at least 20%, while others are happy with 10% or 15%. Working with a comparison company like Savvy<\/a> means you can compare lenders side-by-side and find the cheapest home loan rates. They partner with the top 25 lenders in Australia, so they\u2019ve not only cut through the clutter on your behalf, but they can also access the best deals available.<\/p>\n\n\n\n

#4 Negotiate the best mortgage rates<\/h2>\n\n\n\n

When you have a shortlist of lenders, it\u2019s worth negotiating with them to see if you can lock in a lower rate (and more favourable terms) for your loan. You don\u2019t have to go to the bargaining table on your own: a mortgage broker can negotiate on your behalf. Along with having insider knowledge and expertise, Savvy\u2019s brokers have buying power because they deal with multiple lenders every year. They can also point you towards lenders who often ‘match’ better offers from their competitors.<\/p>\n\n\n\n

You might be wondering, ‘do you have to pay a mortgage broker?’ Nope. Brokers work on commission, so they\u2019re paid by lenders. But the industry is highly regulated, so mortgage brokers can\u2019t give any lenders preferential treatment. <\/p>\n\n\n

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Image of Lantern House, take the tour<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n

#5 Make smarter repayments<\/h2>\n\n\n\n

Once you\u2019ve secured a loan, there are a few ways you can structure your payments to save money in the long run. <\/p>\n\n\n\n