The following are some tips for mortgage  borrowers:

Shop around
There are hundreds of mortgage options in the market. Shop around carefully as this could save you tens of thousands of dollars over the term of the loan.

Use a good calculator
With the Internet and today’s modern online calculators, searching for the right mortgage is a lot simpler and faster than it used to be. Why not take advantage of this technology rather than doing it the old inefficient way of visiting or calling each lender. Why not use an online mortgage repayment calculator to narrow down the options and discuss it further with one or two lenders.

Consider your circumstances carefully.
The cheapest loan options will depend on your particular circumstances. For instance, if you have a large amount of income coming into your accounts on a regular basis, a mortgage with an offset feature account could save you a lot of money. A honeymoon rate may save you money in the short run but may not be the best option if you are forced to sell or refinance for any reason.

Don’t overstretch yourself
Repayments may be low now but they could be much higher if interest rates rise in the future.  Will you be able to afford the repayments if rates go up several times? Things can change unexpectedly, so you should make allowances for unforeseen circumstances such as a drop in income. It is wise not overcommit yourself when it comes to repayments. Also, be wary of loans that have hefty exit fees. Repayments may be low now but they could be much higher if interest rates rise in the future.  Will you be able to afford the repayments if rates go up several times?

Tools like mortgage calculators and rate comparison tools, provided that they are of good quality, can help consumers see through the marketing hype and make an informed decision. To compare 100′s of loan products please  use our advanced mortgage repayment calculator.

While there is inflation in some services such as rental housing and electricity, it is clear that some sectors of the economy are struggling and some economic indicators are indicating a slowing of the economy. Continued turmoil in Europe is causing a high level of economic uncertainty which is being reflected in the behavior of consumers. Depending on how the situation plays out  in the global economy, we may see further rate rises in 2012, particularly if the Asian economies are severely affected by the situation in Europe. It will be interesting to see how the rate cuts affect activity in the housing market in the months to come.

Opinions on whether rates will rise seem to be swaying back and forth on a weekly basis with each set of economic data seemingly contradicting the the previous set of data. The latest Reserve Bank minutes is sounding much less hawkish than anything they have put this year.

This must come as very welcome news to mortgage holders in Australia who are increasingly under pressure if as indicated by mortgage defaults and consumer confidence.