Top tips for comparing home loans, and why you should do it today
Tue Sep 20 09:30:00 AEST 2016
Home loan comparisons are an important part of buying a home. If you’re considering buying a house, a simple loan comparison can tell you what loans and rates banks and other lenders are offering.
If your mortgage is more than a year old, it’s possible the product you chose last year is no longer the most suitable option for your situation. With a quick loan comparison you might be surprised to see how much money you could be saving.
Have you considered a home loan comparison to check if your home loan is still the most suitable loan for your situation?
What a comparison will tell you
At first glance it can be hard to tell which loan is right for you. The differences between mortgages run deeper than just the interest rate you’ll be charged.
By running a mortgage comparison you’ll understand what the differences are between home loans, including interest rates and fees. By looking at the different loan products from different lenders you’ll be able to understand costs and potential savings.
Here are some of the things to consider when looking at home loan comparisons:
Annual interest rates
Average annualised percentage rate (AAPR)
Monthly or annual fees charged
Loan flexibility (interest only mortgage option or principal and interest)
Offset account options
Potential exit fees and charges
Maximum loan to value ratio
Online banking capability
Home loan comparisons will be able to tell you what each bank or lender can offer you. This gives you the power to make an informed decision about what loan is right for your circumstances. You can also talk to a mortgage broker who can help talk through your options with you.
How a Choice Home Loans mortgage broker can help
Doing research on your own is always a good start, no matter what the task. When it comes to comparing home loans, understanding the finer details can be a frustrating task. It can be hard to know if you have collected all of the relevant information.
This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the articles is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).