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Choosing the right home loan provider

When taking out a mortgage, one of the toughest decision you will make is which lender to partner with.

When taking out a mortgage, one of the toughest decision you will make is which lender to partner with.

Mortgage Choice has access to over 20 lenders – giving you plenty of options to choose from.

Often, with so much choice, it is hard for people to make a decision. People get choice phobia and worry they will make a mistake. And, when you consider that a mortgage is one of the largest financial commitments you will ever have, it is easy to understand why so many people worry about their choice.

Thankfully, there are a few easy steps you can take to ensure you ultimately partner with the right lender for your needs.

Step 1: Make a list of what you need

Undoubtedly there will be a few things that you want and need from your preferred home loan lender. These things may include (but are not limited to):

  • The ability to make unlimited additional mortgage repayments;
  • An offset account;
  • A redraw facility;
  • 24 hour phone support;
  • Local bank branch access; and/or
  • Competitive home loan interest rate.

You don't need to have all or any of the above items. At the end of the day everyone is different and everyone will be looking for different things from their lender. The key to picking the right lender is to know what you want and then partner with a financial institution that meets those needs.

Step 2: Do your research

After you have identified exactly what you want from your preferred lender, you can start to shop around and see which financial institutions will meet your needs. Speak to your family and friends and find out who they deal with. Go online and research the various lenders on the market. The better informed you are, the more likely you will be to choose the right lender.

Step 3: Speak to a professional

After you have done your due diligence, it is important for you to seek out the advice of a professional. A professional mortgage broker can take you through your lender options and help you identify which lender might best suits your needs.  Further, they will be able to help you secure a very competitive home loan rate because they have a relationship with many different lenders. 

Step 4: Don't rest on your laurels

Even after you have selected a lender to partner with, it is important not to take a set and forget attitude towards your finances. The lending market – just like the property market – changes quickly and frequently. In order to stay ahead of the game and ensure you are always with the right lender for your needs, it's worth reviewing your finances on an annual basis. 

Posted in: Home loans

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