The best questions to ask your bank or broker when considering a home loan
With the recent RBA rate reduction, stalling inflation, the longest federal election in our history, debate over negative gearing and question marks over the strength of Australia’s housing market – it’s only right to be a little confused about where the economy is heading.
With nearly 800 thousand home loans written in Australia last year – in a market worth $1.4 trillion – it’s a fair assumption that some potential borrowers don’t know what to do or the best questions to ask.
So let’s have a look at the type of questions borrowers should be asking a bank, lender or mortgage broker when they start looking for a home loan or refinancing their existing loan.
The best questions to ask your bank or lender
1. Can you please confirm the interest rate on my home loan?
2. How does my rate compare to the current rate you are offering new customers?
3. Are you prepared to lower my rate to keep my business?
4. Can you provide the best fixed rates options you have available?
5. Why should I stay and keep my loan with you?
The best questions to ask your finance or mortgage broker
1. The interest rate on my home loan is x.xx%, what’s the best rate you could offer?
2. Who is the lender offering that rate?
3. How many lenders do you have on your panel?
4. Why are you suggesting that particular lender and that rate?
5. What are the fees and charges to refinance and what are the fees and charges for the new loan?
6. If I did refinance, how much money would I be saving?
7. How would you structure my loan so that I save interest and can pay off my loan more quickly?
Remember the home loan is your’s, you should never have to feel uncomfortable for asking a question.
By asking questions you are seeking the answers to help you be more informed and more confident in making decisions.