Choosing the right home loan involves plenty of thorough research
Once you've saved up for a deposit on your first property, the next step is to find a home loan. From analysing interest rates to loan periods, it's easy to choose the first mortgage that comes along - but it could cost you dearly.
With so many products out there, it can feel impossible to narrow down the options, which is where the services of a mortgage broker are invaluable. They will carry out a home loan comparison on your behalf and present a range of different options. This way, you can get a good idea of the products that are available, as well as how much you will have to borrow.
How big does my home loan need to be?
Everyone has a different financial situation, which is why there's no such thing as a one-size-fits-all home loan. You will need to weigh up your individual circumstances and select a product that's most suitable for your needs.
A good place to start is to use our mortgage calculator. All you need to do is input some key figures and it will give you an idea of what your first home loan repayments might be. You will also be presented with a list of lenders who are offering mortgages that might be right for you.
It's important to ask yourself 'how much can I borrow?' during the early stages of the search for a mortgage. No matter whether you're looking for your first home loan or want to re-mortgage, it's wise to have a firm idea of exactly where your finances stand before approaching a lender.
Your deposit will play an important part in this. The more money you have to put down on a property, the more appealing you will appear to a prospective lender. Aim for around 20 per cent of the property's value for the greatest bargaining power. Remember to use home loan comparison tools to determine what your ideal mortgage solution is.
Why should I use RateCity to compare home loans?
Do you want to know if you're getting a competitive deal on your current home loan or are you in the market for a new one? RateCity allows you to search, compare and apply for more than 2,000 home loans. All you have to do is complete the mortgage form at the top of this page to receive immediate results, or head straight to one of our popular searches found at the base of this page.
Some of the benefits of using the RateCity home loan comparison service are:
- We can help you search, compare and apply for more than 2,000 home loans
- Input your personal information for immediate results
- We offer a mortgage calculator to give an idea of your borrowing power
- Our service extends to investment home loans, SMSF loans, and line of credit and equity loans
- We work with some of the biggest lenders in the country, as well as smaller ones you might not otherwise have considered
Which home loan should I choose?
The only person who can determine which home loan is right for your needs is you. Industry experts can provide all the facts and figures you need to carry out a home loan comparison, but the final decision rests with the person making the application.
If you need further information, we recommend that you take a look at our Home Loan Guide. It gives a valuable insight into the criteria you'll need to consider when weighing up the options.
You might be applying for your first home loan or moving up the property ladder. In either situation, it's imperative that you know the short- and long-term financial ramifications of your decision, and choose a product that most accurately reflects your requirements.