Getting a cheap mortgage is among the very best elements of good financial planning. Buying a property is the biggest financial commitment that most people make and getting a cheap mortgage can be the difference between a good investment and a bad investment.

Choosing the right mortgage for your personal needs and situation can be a difficult choice and what appears to be a cheap mortgage may turn out to be an expensive one if the terms or the structure are not correct for you.

Most people only look closely at their mortgage every 4 – 7 years. During this time mortgage types, rates, terms, lenders and requirements will almost certainly have changed. There is a lot of information about mortgages available online and we have provided several articles from industry experts on this site as well as calculators and newsfeeds.

To help make sure that you get the mortgage that is best for your needs you may wish consider engaging the services of a mortgage broker. A broker will work on your behalf to find the deal that most fits your requirements and once a lender is found they will try to negotiate the best possible rate. We have compiled a list of mortgage brokers in your area and would suggest that you contact several and obtain recommendations from trusted sources.

The main elements that will ultimately determine if you are really getting a cheap mortgage or something that merely looks cheap include:

Interest Rate:   

1. The lower the interest rate the less you will have to pay to the lender over the lifetime of the mortgage.
2. Be aware of rates that are only low for a short period of time and then may rise to a rate that is higher than the standard rate.
3. If the interest rate is variable check what determines rate changes – sometimes it is the lender, sometimes it is linked to a standardised rate.

Fixed or Variable Rate:

1. Mortgage rates may be fixed for a period of time - thereby given you certainty over your monthly payments – or the rate may fluctuate based on market conditions.
2. Fixed rate mortgage offer protection against a rise in interest rates but they may also lock you in to paying much more than you would pay with a variable rate.
3. If you take a fixed rate make sure it is for a term that matches your financial plans.

Special Terms:

1. Each mortgage has terms that will affect the overall amount that you pay during the life of your mortgage and what you can do within that period.
2. Check to see if you can pay off all or part of your mortgage early.
3. Check to see how interest is calculated – daily, monthly, annually.
4. Can you automatically transfer your mortgage to a different type e.g. a fixed rate, during the term.

So, getting a cheap mortgage is important and help is available, please use the resources available on this site and if you have any questions please feel free to contact us.