Helping You Compare Home Loans
Comparing financial products is something that we at Webdeal.com.au do on a
daily basis. It is our business to know and understand home loans, car loans,
debt consolidation products and the like. Comparing different loans is
nothing like comparing the price of groceries or petrol. Understanding the
methodology behind financial products is essential when trying to compare home loans.
The Australian mortgage landscape is overflowing with spruikers promoting
discounts, cheap rates, no fees and other bells and whistles. Before
committing to accept any loan offer, it is important to understand what these
offers actually mean to you as the borrower. The borrower needs to be
familiar with the available loan features and those which are essential to
their lifestyle and product use.
Is The Loan Comparison Rate Important?
In comparing home loans and their interest rates, it is important that you
take into account the mortgage comparison rate not the advertised rate
associated with a home loan. The difference between the two can translate to
thousands of dollars over the life of your loan. A loan Comparison rate is a
calculated average interest rate that you can expect to pay over the life of
a loan with the lender of your choice. The calculation of this rate will
associated loan costs and fees over the life of a loan and is known as the
‘true’ interest rate.
Choosing Home Loan Features
Do not get trapped in being sold loan features that you do not need. If you
have no intention to sell up or upgrade your home in the near future, there
is little reason to look for a portable
home loans. However if your plans include selling your property in the
short to medium term then understanding exit fees as well as the portability
of your mortgage can be critical. Selecting a very cheap fixed mortgage can
be a mistake if you are looking to sell your property in the short term.
Generally the highest exit fees apply to a borrower breaking up a fixed
mortgage contract. May be it is a good time to think about income protection insurance quote? Visit the Lifedeal, you
intend to continue holding your property and rates are expected to go up,
fixed loan can be a good idea.
Banks vs Non Banks – which lenders are best?
Many borrowers worry about using a non-bank lender when applying for a home
loan. There is no real reason for this concern. All home loan lenders
operating in Australia, are regulated by the government. In fact many
non-bank lenders are specialists in bad credit or self employed home loans
and can offer deals not available through banks and other mainstream lenders.
It is important to consider the available loans irrespective of the lender
when comparing home loan. Limiting your choice to the big four, will also
limit potential benefit and savings available.
Home Loan News
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