Save Money on Mortgage
Save money on mortgage. Here are the most effective ways to save money on mortgage, mortgage insurance, mortgage insurance premiums and mortgage insurance covers.
Get the right broker
Brokers can save you significant amounts of time and money. They have the experience and resources to help you source for the best mortgages, and carry a greater clout with lenders. Thus, they can help you secure mortgages otherwise very difficult to obtain.
Nonetheless, the brokers themselves can be expensive. Here are some ways to cut down on broker costs.
Choose only the brokers who do not charge broker fees
Brokers earn money in two main ways. First, they earn commissions once you sign the mortgage contract. Lenders will pay brokers up to 1% of the mortgage’s value. They also earn through broker fees that are charged directly. However, there are still brokers who offer their upfront services for free, and earn only the commissions. Go for these brokers – they are usually also the largest and most reputable companies who can afford not to charge the basic fee.
Make sure your broker is ‘whole of market’
This means that your broker covers the entire market of lenders, and not just a ‘panel of lenders’. This is crucial, as it is the only way you can get the best deals from the broad spectrum of lenders.
The larger brokers also have exclusive deals with the bigger lenders – these deals can be highly attractive, so do consider the brokers with many exclusives.
Save Money Mortgage Insurance Policy
Save Money Mortgage Insurance Premium
Save money mortgage insurance premiums: the next major cost associated with mortgages is the mortgage insurance premium. They can be extremely expensive if you do not make use of the most cost-effective resources. How do you save money on mortgage insurance premium?
Opt out of elements that you do not need – For example, if you are self-employed, opt out of the ‘unemployment’ aspect of the mortgage insurance cover. This lowers part of your mortgage insurance premium.
Save Money Mortgage Insurance Cover
Do not get your mortgage insurance cover from the mortgage lender – Instead, get it from a specialist provider. It is almost always much cheaper. Mortgage lenders like to bundle expensive mortgage insurance covers with their mortgage deals in order to make even more money.
Level-term life assurance
This policy will ensure a fixed lump-sum payout should the mortgage payer in the family pass away. Unlike mortgage decreasing term assurance, payouts under the level term life assurance do not decrease over time, so they offer a better value.
Note that the shorter the policy, the cheaper the policy. Hence, make a decision based on who you want to protect. For children, the policy should be in place all the way until they complete their full-time education. For your spouse, the policy should be in place until the income earner reaches a pensionable age.