So you’ve made the big decision to buy a home? Now comes the fun part – the research, processes and paperwork. The first stop is selecting a home loan. This is just as important as your home itself as without it you will have no home and if you pick unwisely you could end up paying a lot more for your home than you would like.
While most of us have an adverse reaction to hours of research, processes and paperwork it’s not only a necessity but an important bargaining tool that could save you thousands off your home loan in the long run.
It would be easy to take the road previously trodden and go with a mortgage lender you know but every lender is different and offers different features, so some will be more valuable to you than others.
Thankfully doing your research doesn’t involve door hopping as you can now do all the background research you like without leaving your couch. Comparison sites like RateCity will allow you to rank and compare a range of different lenders based on what matters to you, whether it’s rates, features or fees.
If you have a current lender but aren’t sure you’re are getting the best rates, knowing all your options is a great bargaining tool when negotiating a better rate.
The size of the lender can make a big difference too. Smaller lenders usually remain competitive by offering lower rates and more flexible features, while larger lenders can provide a broader range of products for different needs.
Some building societies and credit unions also have requirements for membership, so make sure you read up on their rules before getting excited over their rates.
There’s also a host of different mortgage lenders for particular loans. For example, some lenders specialise in low-doc home loans, and therefore generally deal with self employed borrowers, while others have better deals for interest only or investment loans.
This is why it’s important to know what you want before you begin hunting for deals. Think about whether you would like a fixed or variable rate, the term length of your loan, and what features, such as redraw options and the frequency of repayments, would be best for you.
You’ll be surprised by how generous and flexible different mortgage lenders are as well. For example, fees for swapping your loan between fixed and variable rates can vary in the thousands, and lenders will also have different policies for borrowers who default on their payments.
For example, some lenders provide repayment relief when borrowers undergo financial hardship and different fees for those who miss repayments.
With over 2000 home loans in the market, it pays to compare different home loan lenders at RateCity to find the perfect one that could save you thousands. You can also calculate your home loan repayments to see exactly how much you can save.