Shop around before you put your eggs in one lender's basket

May 06, 2014
Richard Windeyer

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.

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

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.

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.

A professional mortgage broker, like myself, 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.

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.

Here are my 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).

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

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