Is your interest rate the most important part of your home loan?

There’s a lot that’s been happening in the world of home loans. Everywhere you look, there’s a new advertisement offering the lowest home loan rate.

With the RBA lowering the official cash rate for two consecutive months and hitting a historical low of 1.00 in July 2019 – many banks and lenders have followed suit and also dropped their home loan offerings.

So all this talk about home loan interest rates dropping begs the question – are they really that important?

Yes, home loan rates are still very important BUT there are other aspects to consider if you’re looking for a new home loan.

Here are some questions you need to ask yourself to help discover whether a particular home loan product is for you.

Do you need certainty?

Low interest rates sound amazing, however it’s important to note that most of these offerings come with a fixed term.

You’ll need to consider whether a fixed loan or variable loan would suit you. Do you want the certainty of knowing your repayments in a fixed home loan, where you can plan your repayments within your budget, knowing they won’t change for a while?

Or would it suit you more having the ability to utilise more features which usually come with a variable home loan?

Do you need flexibility?

So, you’ve seen a home loan offer with a new, low interest rate. But does it have all the features you would need to suit how you want to repay your mortgage and organise your cashflow?

You might need an offset account, to give you the ability to use a separate deposit account for your everyday spending while still working to reduce the amount you pay on your home loan.

Along the same lines, a redraw facility might work well for you where you have the opportunity to make extra payments, while still having the flexibility to access the excess if you need it.

Latest home loan interest rates
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Do you need accessibility?

You’ll also need to consider how you want to use the bank or lender. Are you an internet banking kind of person? Or would you prefer branch access to talk one on one with a human being? Your personal preferences matter when it comes to choosing a home loan provider as you would know what kind of support you’d like from your bank.

There are plenty of reasons to consider a certain home loan product beyond a low interest rate. Whilst you might be focused on your current or potential rate, knowing how you need your home loan to work for you is just as important.

At Mortgage Choice, we always strive to present numerous options that will suit you, taking into consideration many aspects of the home loan.


Want to learn more? Reach out to us for expert advice on every aspect of your home loan.

Posted in: Interest rates