November 1, 2018
How to choose a home loan that is right for you
Low rate products
Introductory offers, honeymoon rates and ‘no frills’ loans are some of the ways banks generate interest in their products, but they don’t necessarily lead to a cheaper home loan overall.
Apples vs apples
It can be difficult for borrowers to compare loans effectively without the right calculators. Not only should buyers be comparing interest rates, but the pros and cons of the product as well, for example: redraw offset, and monthly fees.
A comparison rate helps you work out the true cost of a loan. It takes into account all fees and charges for the life of the loan and reduces to a single percentage figure. This allows you to compare loans from different lenders and is quoted on all advertised rates.
Terms and conditions
Some low interest products may have conditions such as break costs, rollover terms, etc.
Getting it right
Choosing the right home loan can be one of the biggest financial decisions you will make. Seek professional advice for peace of mind.