Can venturing into the unknown get you a better deal?

April 03, 2013
Richard Windeyer

Have you found your dream property and are now in the position to hunt for the right home loan for you? If so, before deciding to settle with a lender that you are already familiar with, it is a good idea to consider a range of loan and lender options.  

Mortgage Choice in Cardiff & Charlestown have a vast range of lenders and loan products available, yet many Australians continue to base their choice of lender on an existing relationship.  

In fact, recent Mortgage Choice first homebuyer research found that 22% of buyers who are looking to purchase their first home before September 2014 will choose their lender on the fact that they currently have their everyday banking with them.  

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 plenty of times when lesser-known lenders, that may not be top of mind for everyday banking needs, offer a superior home loan deal. Borrowers could be missing out on a more affordable loan that has features better suited to them.  

When settling on a home loan it is important to determine if the lender’s offering is competitive. It’s a good idea to talk to your mortgage broker to 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. A professional mortgage broker will also highlight any rate discounts and special offers that may be available to you.  

While getting a home loan with the lender you already have an account or loan with may be an easy option, it is not always in your best interest. Given the wide range of lenders and loan options on offer, I encourage borrowers to shop around!  

If you’re looking to do some initial research, I have put together the following list of top tips to help you when comparing lenders and home loan offers:  

    1. How competitive are the lender’s interest rates? Research if the lender has cut their home loan rates in-line with the Reserve Bank’s recent rate moves. Compare their rates to other lenders’ offerings.  
    2. Do their fees add up? Ask your 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. Do they offer the features you need? Check that the lender offers a loan with reasonably priced features that will benefit you today and tomorrow (eg. offset account, redraw facility, etc.).  
    4. How accessible is the lender? If online chat, phone support or branch access on weekends is high on your list of priorities, investigate whether the lender, or an alternative lender, offers such facilities.
    5. Can the lender meet your changing needs? Explore your options further to know if the lender offers 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).  

For more information contact Richard Windeyer on 1800 01 LOAN or click here to "Book a Meeting".

Posted in: First home buyers

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