Step 4: Shop For the Best Deal

The next important step in obtaining a competitive deal from your lender is to know what's out there. Television and radio advertisements, newspapers and magazines such as Your Mortgage are great places to find out what deal are currently on offer. Be proactive and contact lenders directly if the advertisement details aren't clear. Whether it's a lower interest rate, zero establishment fees, frequent flyer points or other value-adds, the more you know about the current home loan market, the better your negotiation skills will be when it comes to talking turkey with your lender of choice. With over 3,000 lending products in the market, it's nearly impossible to keep track of every one that is being offered.

Lenders continue to add new features, honeymoon rates and an endless array of 'bells and whistles' to their loans. Simply asking your lender of choice if they have any new products or special offers available could result in significant interest savings. Asking them to check with head office is probably a good idea as well, as loan officers are sometimes the last to hear about these things! While bouts of closing branches and record profits might suggest otherwise, financial institutions do take customer loyalty seriously. The cost of acquiring a single customer, through snappy advertising and marketing campaigns has been estimate to cost upwards of $1,000.

This can be used to your advantage when it comes to negotiating your loan. If you've been with one institution for a long time and have multiple accounts with it, your position improves further. Ideally, you own your own business and have your company accounts with a particular institution. Start making noises about moving all of your accounts to the lender that offers you the best home loan, and just watch the reaction

Our Comments:
As you can see, getting a suitable loan with the right conditions is a very confusing task and that is why the mortgage broking industry now accounts for a large portion of all new loans. In the US mortgage broking is the predominant method of securing your home loan. As professional mortgage brokers we are reliably kept abreast of all the new rates, specials and product enhancements by the lenders, as they know we represent to our clients the products of many lending institutions. We shop for a competitive deal for you.

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