Reviewing your home loan options can save you thousands in interest over the term of your loan. Plus, it gives you reassurance that you’ve made a sound financial decision. But it may seem overwhelming, which is where a mortgage broker can help you understand all the terms, rates and features as well as assess your current financial situation and help you attain your financial goals for the future.
Top 5 Tips
To get the best loan possible follow these tips:
1. Consider your circumstances – Before you buy a home you need to clarify your wants and needs. Ask yourself why you’re buying a home and if you can afford it, then work out stamp duty and other costs.
2. Work out what you can afford – The biggest risk when you buy a home is that you won’t be able to afford your home loan repayments. So rather than borrowing at your maximum limit, think smaller, then when rates rise you can still afford to make repayments.
3. Research the market – Consider your options. Look at home loan features. Decide what you will and won’t use. Then compare home loan products. On average, the difference between the most expensive and cheapest home loan is around $4,000.
4. Know what comparison rates mean – A comparison rate includes home loan interest rates and ongoing fees, as well as establishment charges, and it’s represented as a yearly interest rate. This then gives you the true cost of a home loan.
5. Look beyond the big four banks – Sure the big four give you security as they’re major lenders, but many smaller lenders have been around for over 10 years and they can offer you more competitive package deals. So before you commit, look at your options and weigh-up the pros and cons.
We believe there is no such thing as a ‘silly question’ so if you want to know more about home loans, then contact eChoice.
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of 25+ lenders and hundreds of loans. Best of all our service is cost and obligation free!
Written by eChoice