If you’re in the market for low rate home loans then you’ve come to the right place, because at RateCity you can compare thousands of mortgage products online to help you select an option that suits your needs. So put your feet up, pull out your laptop and start comparing.
Whether you’re interested in applying for a fixed rate or variable rate home loan, it pays to shop around and look at products offered by more than the major four banks because the smaller institutions often offer low rate home loans. By switching from the benchmark standard variable home loan rate – the average of the big four’s standard variable rates – to low rate home loans the savings can be significant.
For instance, if the benchmark standard variable rate is say, 7.4 percent and you switch to another lender with low rate home loans at 6.4 percent you’d instantly shave 100 basis points off your rate. For a $300,000 home loan repaid over 25 years, for example, this represents a saving of about $191 per month and more than $57,000 over the life of the loan. Clearly, it can pay to opt for low rate home loans, where possible.
What else you should consider
However, a low rate home loan should not be the only factor considered when shopping for a home loan to suit your circumstances. Other factors to take into account include fees, charges and other features. By looking at a home loan comparison rate, rather than the headline rate, you should be able to get a better idea of a home loan’s overall cost. That’s because the comparison rate takes into account most fees, unlike the headline rate.
When you look at low rate home loans, borrowers would also be wise to consider a product’s features. Does the home loan allow for a split loan option, additional repayments and lump sum payments, for example? Does the loan offer mortgage portability – which means you can transport the mortgage from one property to another if you move house, for instance. Offset accounts can be a helpful loan feature too.
Choosing a home loan is a big financial decision that will be prominent in your life for usually over 25 years, so it’s important to compare and be aware of all your options. Another good tip can be to ask your institution for a home loans fact sheet, so you can judge all home loans on the same criteria. And finally, why not try our home loan repayment calculator to help you get a better idea of the costs of borrowing.
And then you can ask yourself: how do you rate your lender now?