Buying a home is one of the biggest investments you’re likely to make. So when it comes to choosing a home loan and lender, it pays to do your homework.
1. Decide your priorities
For many home buyers the first step in choosing a lender is to decide what type of loan they need and what they want from a lender. While finding the lowest interest rate is important, you may wish to consider other factors like the choice of loans, the level of flexibility and where the lender is located, what products and services are needed and how easy it will be to deal with them.
2. Choose the loan features
Once you have decided your priorities, you need to consider the type of loan and loan features. Do you want the flexibility of a variable rate home loan or the certainty that comes from a fixed interest rate home loan? Do you want to pay off your home quickly? Do you wish to redraw on the loan in the future? Does the loan need to be portable in case you move in future?
3. Type of lender
Australians are spoiled for choice when it comes to choosing a lender. In addition to the big four banks, you can choose from a range of smaller banks, credit unions and specialist lenders. You need to find an experienced home loan consultant that can compare dozens of loans at a time that is convenient to you.
4. Awards and reputation
The reputation of the lender and quality of their loans is important. Has the lender been independently assessed? What do others say about its services and products? Talk to your friends and family about their experience of choosing a lender.
5. Shop around for the best rate
Ultimately how much you pay does play a big part in how happy you are with your choice of loan and lender. Shop around for the best rate. Use the comparison rate to compare apples with apples. And remember that sometimes the cheapest option can cost more in the long run.
For further information please contact me @ IPS Home Loans on (02) 4227 5511.
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