< Back
Comparing Apples with Apples
Source: Resi Mortgage Corporation
With competition now so fierce in the lending space in a bid to get your home loan business, there are currently all sorts of deals and enticements on offer - so when you are shopping for a home loan, ensure you’re comparing apples with apples.
One of the first things you need to do is investigate and compare the true cost of the loan, and base your decision on that - rather than a special upfront enticement you may initially be offered.
What you may not realise is you may pay for that heavily promoted or advertised loan feature elsewhere in your package whether it be an establishment fee, a higher interest rate or inflexible loan terms.
You therefore need to take stock of all loan fees and charges attached to a home loan such as ongoing account-keeping fees, redraw fees and fees for professional packages. While some lenders don’t charge any ongoing fees, others will - so it’s important to find out how your loan is packaged up.
There are five key elements of a home loan you should consider when making your decision. Look for:
·A low interest rate
·Low or no fees
·Flexibility
·Useful features of the loan
·Level of customer service
When you’re comparing a range of products based on this criteria, the difference between loans can add up to tens of thousands of dollars over the life of the loan, so your best investment here is actually your own time.
It’s no good just leaving it up to others - you need to become more personally involved in such an important long term financial decision.
Then when you scrutinize your loan documentation one last time before signing on the dotted line you can be confident the buck stops with you.
Resi
Home Loans offers an ideal range of
home loan and
home mortgage products to suit your every need. To find the
best home loans for you, check out our
mortgage calculators and our current
home loan rates today.