Home Loan Financing Tips & Tricks

Financial advice for structuring your loan application for minimal costs:

Note: these negotiation tactics are designed for the borrowing of large amounts - eg. a home loan

• Shop Around: Play the banks off against each other - tell them you got a better quote from their competitor and give them the details.
• Don't Burn Bridges: Be honest with your loan consultant, if the relationship sours (eg. after you try and hardball them on an interest rate cut), go to another branch of the same bank - all loan brokers work on commission and they will be happy to see your business.
• Don't commit too quickly: Anything involving a lot of money (that you are liable to pay) should never be rushed. A good rule of thumb is the more money you are dealing with, the longer you should spend planning your approach.
• Borrow as little as possible: There is a natural inclination (specifically with buying things like property and cars) to want the best and most expensive one you can afford. Any time you are borrowing money to satisfy this emotion, take a step back and do some math. The less you borrow, the less you will pay back and the more money that will go into your pocket rather than the lenders. Buy the big-ticket home or car second time around when you have gained more equity and can afford to pay it off quickly.