With an overabundance of lenders to choose from when it comes to applying for a home loan nowadays, it pays to do your research beforehand to understand the features, interest rates, and fees before you make a decision.
Buying a new property is an exciting journey, and due to the significant financial sums and long-term commitment involved, it is crucial to prepare ahead on how you will go about securing a suitable loan.
However, many people find it challenging to choose the right lender due to the overwhelming number of lenders in the marketplace. So, how do you go about researching the right lender and the best deal for your loan?
A home loan is a long-term debt, so even a small variation in the interest rate can add up over time.
Also, because all lenders have a buffer when assessing your capacity to borrow, be mindful about where you are going to put your extra cash. With low interest rates this buffer is significant. Most often best use is in an offset account that offsets the daily calculation at the same rate. It can be very beneficial & low risk as it saves you at the retail rate you are paying. This is quite an extensive topic & I suggest you get in touch to learn of your options with our Mortgage Reduction Programme.
Once you are comparing loan products with the same flexibilities, you should aim for the lowest interest rate range while keeping in mind whether it is fixed, variable, and the overall term.
Home loans usually come with options and features which may affect how much you’ll end up paying. For example, whether the loan includes facilities of redraw, offset account, or line of credit. Depending on your situation, it may not be worth paying for the additional features.
Every loan comes with a myriad of fees, so ensure that you research the application fee, valuation fee, lender’s legal fees, ongoing administrative fees, breaking fee, and loan feature fees.
Use Professional Assistance-it’s usually free
It’s a good idea to get professional help so you come up with the right answers as it can be quite a daunting task.
Using a Mortgage Broker
Fortunately, you can also engage the services of a professional mortgage broker, who can negotiate with the banks and lenders to arrange a home loan for you. While this is a great time-saving alternative, be sure that you also do your research first.
A good mortgage broker not only meets your needs, but can also help you get a loan that is the best value for money. What to look for in a broker:
Professional membership — the MFAA (Mortgage and Finance Association of Australia) maintains high ethical standards and industry-leading educational criteria for its members
Listens to your needs, goals, and circumstances
Works with you to decide how much you can afford to borrow
Finds and offers various choices, while making suggestions and recommendations
Applies for your loan and manages the process up till settlement
Mortgage managers and white-label lenders also offer credit and loans such as mortgages on behalf of banks and financial institutions.
Why Choose OzLoans Finance
Established in 1999, Ozloans Finance is a trusted MFAA member and specialist in residential financing, with a personalised and holistic approach to provide our customers with the best loan that suits their needs. Get in touch to find out how we can help with your home loan today.