Which home loan and lender should you choose?

April 15, 2014
Hannah Fox

Top tips for comparing home loans and lenders

When you’re applying for a home loan, choosing to go with a bank or lender that you already have a relationship with is not necessarily the right course of action.

With interest rates at near record lows and the property market performing strongly, Australia’s lenders are climbing over each other for your business.

So it pays to shop around...

Often we meet borrowers who in the past had decided to take out their first home loan with the same lender that they have always banked with.

Now while this is not necessarily a bad thing, enlisting the services of a professional mortgage broker like us, can help you compare loans from a wide range of lenders based on the loans’ interest rate, fees, features, flexibility, and the lenders’ customer service performance.

And over the life of the average home loan, getting this decision right will save you thousands of dollars and cut years off the life of your loan.

To get you started, here’s our 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 your 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 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 commitments: 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).

Of course we are here to help and can do all this work for you. 

So call us today on 9432 6070 or click on the ‘contact us’ tab at the top of this page.


Posted in: Tips

Contact us today.

Additional Comments? * :