When comparing Aussie home loans there are many factors to take into consideration. The best way to get started is to carry out a comparison. By comparing home loans side-by-side you can get a great overall look at what each Aussie home loan is offering and work out what matters most to you.
With the RateCity home loan calculator you can simply punch in the amount you wish to borrow, and the calculator will provide a monthly repayment figure from a number of different lenders.
Apart from trying to get a low interest home loan by using the calculator, there are other factors worth considering when looking for a home loan.
If it’s a first home loan, be aware that some lenders will charge an application fee – although not always. An establishment fee is meant to cover the costs of creating your account and producing the documents such as the ‘Certificate of Title’, required to set up your home loan.
An establishment fee might also cover the cost of a representative from your lender attending the settlement, and for the lodgement of any documents with the Land Title Office.
Moreover, the amount you pay to establish a mortgage differs between lenders and even home loans. Some may charge hundreds of dollars or more, while others will waive the fee charging no establishment fees at all.
So it’s worth taking this into consideration when calculating the costs of setting up a home loan or switching to another lender.
Likewise if you decide to switch between a fixed rate home loan and a variable rate home loan, you may need to pay a break cost. That said, since the middle of 2011, exit fees no longer apply if you refinanced or took out a variable rate mortgage after July 1.
Split the difference
These are home loans that are part fixed and part variable, in almost any proportion you prefer. With a split rate home loan, it doesn’t really matter what the lenders and the Reserve Bank of Australia settle on with interest rates, you win some and lose some either way.