Other than comparing interest rates, what are things to look for in a home loan?
Hi Maria. That is a very good question as most people get caught up only on interest rate. Depending on which lender you go to you will also need to look at for any application fee for the loan as well as any ongoing fees. One of the most important things is does the lender suit what you are wanting from a bank. Do you require bank access, would you like an offset account or transaction account, do you want a credit card.
There are many choices out there from the no frills lender which would have no ongoing fees all they way to the all in one loan account which would have an offset, credit card and transition account.
I would recommend you talk to a mortgage broker to discuss your situation to determine what products may be right for you.
When looking at Home Loan options, there are many things to consider. To name a few ....
- fees on the loan
- additional fees if buying a property
- if Lenders mortgage insurance is applicable ( some Lenders have promotions where they will waive LMI up to 85%)
- variable or fixed options
- loan flexibility
- if offset accounts are available
- professional package deals
As you can see it is important to talk to someone who can steer you in the right direction and show you all the options for YOUR individual circumstances as they are all different
Hope this helps
At our office we always say "it's not just about the rate". So, you have asked the right question.
I would suggest that you should consider whether you would have the need for an offset account. This can be a real money saver in terms of how much interest you can save over the life of your loan.
Another feature could be whether you are able to split your loan and have some on a fixed rate and some on variable. With rates so low it could be an opportune time to lock some of it away.
Having internet access is a biggie for some. We are going to the branch less and less and having that convenience of Internet banking is a time saver.
Find out whether your home loan allows for additional repayments, especially if it's a fixed rate loan. Putting extra into your loan will mean that you can build a buffer and have access to redraw the available funds in an emergency or to pay a large bill.
A policy of some lenders is the ability to capitalise the mortgage insurance on top of the loan amount. Will save you upfront costs.
Of course it goes without saying that your broker should be looking at the best rate also as part of the holistic approach. Banks and lenders are still offering discounts off their standard variable rates.
Best of luck.
You can make an enquiry on our website www.diversifi.com.au