Good Credit History
Make sure you have a good credit history, means you have never defaulted any payment. This includes payment of utility bills, repayment of any loan money and payment of your credit card bills. If you have been servicing your all bills on a regular basis, you can get the best mortgage rate. The lender trusts you can pay the loan in regular payments.
Having a regular and sufficient monthly income is a great factor that matters in deciding interest rates for you by the lender. If you meet this requirement convincingly well, you can get the best rate on your home loan even if you are applying for the refinancing option. Lower income contribution increases the instalment average and the interest rate.
In addition to having a regular and sufficient income, a stable job history is another factor that counts in your home loan application. You should provide the entire employment history and if you have been employed most of the time without any breaks, you are likely to get one of the best mortgage rates.
If you have some other assets, any land or some savings, they can help you get the best mortgage rate. It is better you have some savings in cash or in form of certificates or bonds and show the proof of it during your loan application. If you have a good income level, with stable job history and some savings, you have a very strong chance of getting the lowest possible rate.
If your home equity is worth 20 per cent of the amount of your home loan, this can help you get the best rate on the loan. This is one the most convincing factors that counts for a lender to offer you the competitive and affordable rates.