April 17, 2014
SHOP AROUND BEFORE YOU PUT ALL YOUR EGGS IN ONE LENDER’S BASKET
Mortgage Choice offers tips for comparing home loans and lenders
Are you considering buying property in the near future? If so, while it may seem easy and advantageous to apply for a home loan through the lending institution you currently deal with, this isn’t necessarily the best route to take.
With interest rates hovering around record lows, and Australia’s lenders offering innovative and sharply priced home loans, there are many good reasons to shop around and consider a range of loan and lender options.
Local Mortgage Choice franchise owner/mortgage broker Mrs Robson said borrowers should not necessarily put all their eggs in one lender’s basket and settle for a lending institution that they already have an existing relationship with.
“Despite the fact that there are hundreds of loan products on the market and many of Australia’s lenders are offering some fantastic borrower incentives, a considerable amount of borrowers will apply for a loan through their current lending institution,” she said.
“By choosing a home loan lender on banking history alone, borrowers could be selling themselves short when it comes to finding the best home loan deal for them. There are many lenders out there offering mortgage products whose features may be ideally suited to a borrower’s needs. Of course, if they don’t shop around, they will never know what is on the market.”
Donna said a professional mortgage broker can help borrowers compare loans from a wide range of lenders based on the loans’ interest rate, fees, features, flexibility, and the lenders’ customer service performance.
“While it may be easier for a borrower to apply for a loan through the lender they already have a relationship with, it is not always the most prudent decision,” she said.
“This Easter, it is important borrowers don’t put all of their eggs in one lender’s basket, but rather hunt around for a mortgage product that is ideally suited to their needs both now and into the future.”
Mortgage Choice offers its top five tips for comparing lenders and their loan offers:
1. COMPARE LENDER INTEREST RATES: Understand what interest rates are being offered by Australia’s lenders at the moment and then compare and contrast them against what else is on the market. While interest rates aren’t everything, your perfect lender should be very competitive on rates.
2. INVESTIGATE THE ASSOCIATED FEES: Many lenders will charge various fees, so make sure the lender you are contemplating partnering with offers competitive fees and charges. Get your mortgage broker to compare how the lender stacks-up in terms of the fees and charges on the loan (eg. for loan features, transactions, late penalties, early repayments, top ups etc.).
3. CONSIDER THE FEATURES: Before you can find the perfect home loan, you need to understand what loan features you want to have both today and into the future (eg offset account, redraw facility, etc). Once you have established what loan feature/s you require, you can see which lenders offer mortgage products with reasonably priced features.
4. CONSIDER THE LENDER SUPPORT CAPABILITIES: If weekend branch access and phone support are high on your priority list, it is important to partner with a lender that offers such facilities.
5. CONTEMPLATE FUTURE COMMITTMENTS: Before you decide to partner with one lender, investigate whether or not they offer a wide range of loan options to suit you, should your personal or financial situation change (eg. if you need a loan top up, access to funds for renovations or you wish to refinance an existing loan).
If you want to learn more about your home loan options, call 1300-591-950 or visit www.mortgagechoice.com.au/donna.robson
For further information or to arrange an interview, please contact:
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances.
About Mortgage Choice Mortgage Choice has sourced a home loan for well over 350,000 people since 1992. It works with all manner of property finance borrowers via hundreds of franchises. The company writes one home loan every 15 minutes in Australia by providing professional guidance on, and choice of, products offered by an extensive panel of leading lenders. Many of its brokers provide a broader service, helping customers source commercial and personal loans, asset finance, deposit bonds and providing referrals for risk and general insurances.
Mortgage Choice pays its franchisees the same commission rate regardless of which lender the customer chooses as long as it's a residential home loan with one of the 27 lenders on our panel. This ensures the broker is focused on getting the right outcome for the customer.
To cater to the growing needs of our customers, Mortgage Choice officially integrated financial planning into the business.