Check That Loan Isn't Too Good to be True

By the resi financial blog team, 12 August 2014

Weigh up whether your rate is a bargain

Over the last few years borrowers have seen a range of new products appear in the mortgage industry – and some with rates that seem too good to be true.

So what can you do when you see such a ‘bargain’ rate?

Follow these tips when shopping for a home loan:

  1. Don’t be taken in by the annual percentage rate only – you must look at the comparison rate as well. You may find fees and charges that didn’t figure into the equation when you focused purely on the rate, making the effect of any savings on that low rate neglible even within the first year.
  2. To identify that the interest rate you are looking at is competitive, go to consumer websites such as infochoice.com.au. mozo.com.au or ratecity.com.au where the most up-to-date rates are shown.  Once you find a rate and a loan you think is appropriate for your circumstances, go to that specific mortgage provider’s website and see if the information is consistent.
  3. Rate is important but do not neglect the other key aspects of a loan that can also save money and time.  Review all the key features of the loan as well as the standard of service provided by the lender.

Sticking to these common-sense tips will help keep your finances in good shape for whatever may lay ahead on the interest rate front.

 

 

 

Categories: interest rates