6 ways to ensure you pick the right home loan
By Aidan Hartley
There's dozens of lenders and hundreds of home loans in Australia.
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?
Here's 6 starting points...
If you're able to pay more than the minimum repayments, you'll need an offset account or redraw facility for extra flexibility.
Simply put, these facilities allow you to make unlimited extra payments to your loan, to free you of your debt sooner.
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.
3. Branch network
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.
If you can go without a physical branch - you'll often find these lenders offer more competitive rates.
4. Loan type
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.
With most lenders, you can have a mix of both fixed and variable, to have the best of both worlds.
5. Rates and fees
Take into consideration the headline and the comparison rate. Work out the weekly repayments. Look at the ongoing fees.
6. Do you meet the lender's criteria?
Woah, going out with a bang, but then again this is undeniably the most important factor.
We all want the best of everything, but that doesn't necessarily mean the best lenders always want you. That's the hard truth.
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.
January 10, 2021