There's dozens of lenders and hundreds of home loans in Australia.

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So, do you go with the one you've banked with for 10 years? The one your parents went with? Or the new online-only one with the flashy website?

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Here's 6 starting points...

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1. Features

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If you're able to pay more than the minimum repayments, you'll need an offset account or redraw facility for extra flexibility.

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Simply put, these facilities allow you to make unlimited extra payments to your loan, to free you of your debt sooner.

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2. Turnaround time

 

Some lenders take 1 day to assess your application. Some may take 8 weeks to even pick it out of the queue! Make sure you know this up front to avoid missing out on your dream home.

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3. Branch network

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It's a declining requirement from a lot of borrowers, however if you still prefer face to face banking, consider a lender with a local branch.

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If you can go without a physical branch - you'll often find these lenders offer more competitive rates.

 

4. Loan type

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Fixed and variable rate loans have different rates and may come with restrictions, consider which is most suited to you and use this as the comparable.

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With most lenders, you can have a mix of both fixed and variable, to have the best of both worlds.

 

5. Rates and fees

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Take into consideration the headline and the comparison rate. Work out the weekly repayments. Look at the ongoing fees.

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6. Do you meet the lender's criteria?

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Woah, going out with a bang, but then again this is undeniably the most important factor.

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We all want the best of everything, but that doesn't necessarily mean the best lenders always want you. That's the hard truth.

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Your experienced mortgage broker will calculate your ability to borrow, check the lender’s criteria, then steer you towards approval with the absolute best loan available to you.

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January 10, 2021