6 tips for mastering the mortgage process
Whether you’re a first-time homebuyer or a seasoned property investor, the mortgage process can get confusing and expensive.
If you want to apply for a mortgage or want to explore switching to a different mortgage, these tips can streamline the process and help you save money.
Here are 6 tips for managing your mortgage in 2022
1. Take time and do your research
Don’t try to rush through the mortgage process, especially if you’re a first-time buyer.
Go out and visit as many properties as you can.
Research different types of mortgages and consult different lending institutions before making a final decision. Remember that not all mortgages are the same. One bank may offer appealing rates, but have terrible terms or a great introductory cash-back offer but be much more expensive over the long term.
Looking for long-term mortgage products? Don’t forget to check out Avant and Finance Ireland for competitive plans.
Here are a few questions to help choose the best mortgage:
How much can you borrow?
How long will it take you to pay your mortgage?
How can you demonstrate your repayment ability for your mortgage?
2. Don’t overpay for home surveys
Once you’ve found a property and it’s been independently valued, get a structural survey or snag if it’s a new build.
The average price for a structural or snagging survey is around €300-€500.
Conveyancing typically costs between €850 - €1200+VAT.
3. Shop around for the best insurance
Homebuyers will also need to purchase Mortgage protection insurance. Mortgage protection insurance is an insurance policy that pays off your mortgage if you or another policy holder dies during the term of the mortgage.
If you have a joint mortgage, both people need mortgage protection insurance. It runs for the same length of time as your mortgage. Luckily, there are good discounts available for insurance buyers who take the time to seek them out.
4. Be ready for the stressful final steps
Final checks and the last steps before finalising your mortgage can be nerve-wracking.
There may be new documents required at the last minute or updated versions of documents previously received.
5. Switching mortgages? Shop around for the best options
Some banks are fighting to get your business so why not make the most of it?
Consult a mortgage broker to talk about your options. Institutions like Avant are currently offering attractive rates designed for switchers - and are assisting with legal fees to facilitate a smooth transition.
In fact, you can get a 25-year rate with Avant at 3% while traditional lenders typically only offer short-term mortgages with similar rates.
Equally, beware of gimmick products with attractive offers like cash-back deals. These gimmick products are often more expensive overall, despite the appealing introductory deals.
6. Get ready to see shifting interest rates
Interest rates in Ireland are already typically significantly higher than neighbouring EU countries.
Interest rates were negative in early 2022, but experts rates are to rise and believe rates will soon return to 0%.
Contact Mark at Symmetry Financial Management to learn more
Book a virtual appointment to discuss your mortgage options with Symmetry Financial Management. Email Mark at mark@symmetryfinancial.ie to get started today.
