For most Australians, buying a home is the single biggest investment they will ever make. Given the number of different lenders and home loan products on the market these days it only makes sense for borrowers to shop around to find the right home loan for their needs. A mortgage is a long term financial commitment and having the right home loan product can save thousands of dollars over the life of the loan and free up your hard earned cash for other things.
Before you begin shopping around for a home loan there are a few things you should consider:
Your credit history
Before approaching any lenders it is important to have checked your credit history. When you apply for a home loan the lender is going to examine your credit history with a fine toothed comb so it is essential that you know what is contained in your credit report so there are no surprises. It is also important to keep in mind that any credit enquiries you make will be noted on your report and this may have a negative impact on your credit score.
Home loan features and options
Off-set account, redraw facility, fixed rate, credit card, honeymoon period and interest only - these are just some of the features available on different home loan products. If you don’t take the time to understand the different features and options you could get the cheapest interest rate but end up paying more money in fees or locked into a home loan that isn’t the best fit for your needs.
Policy can vary greatly from one lender to another (especially with complex lending scenarios) so it pays to do your homework on lender niches. What doesn’t fit one lender’s policy could be fine with another lender. Approaching the right lender could make all the difference in making the home buying process an easy one.
Consult a mortgage broker
Mortgage brokers are the experts when it comes to comparing lenders and home loan products so save yourself the time and effort and consult a broker who can do the work for you. There is no obligation and best of all there is no cost to you!