If you are planning on borrowing money from a financial institution in Australia, there are many important facts you should know before comparing home loans. For instance, lenders have strict criteria that must be met in order to be approved for borrowing money. These rules can vary slightly from lender to lender but there are similar guidelines including you must show six months of regular income and savings and you need a deposit especially if it is a home loan you generally need at least 10 percent.
When you are borrowing money, you should also be aware of fees and charges associated with the loan. Fees and charges vary with price and with lenders but may include:
- Establishment fees
- Legal fees
- Monthly or yearly service fees
- Offset account and redraw fees
- And of course the interest rate
There are hundreds of lenders with thousands of loans on the market all competing for your business so make sure you shop around for the best mortgage deals before borrowing money.
You can compare variable rate home loans, fixed rate home loans plus SMSF home loans at RateCity. You can also use our free Australian Mortgage Calculator to see how much you might need to repay for different home loan amounts and different interest rates.