The mortgage loan market is a search term that web browsers use when starting the hunt for a mortgage from a bank, building society or credit union.
To find home loans suitable for your circumstances from the many options in Australia’s cluttered mortgage loan market try using RateCity’s home loan calculator or compare home loan rates from the major lenders and a range of other institutions. This can also help you avoid being caught short with an expensive mortgage rate.
By shopping around online, you may be able to narrow the massive choice of home loans offered by the mortgage loan market, while also securing a low interest home loan. For example, by comparing a variable rate mortgage on a $300,000 loan at 8 percent and another at 6 percent, you could save around $140,000 over the 25-year term of the loan, according to RateCity. This also illustrates the importance of rolling up your sleeves and doing plenty of home research – and it can literally save you plenty of coin too.
Among the many home loan options available, some lenders offer home loans with a low introductory (or honeymoon) interest rate. Many first mortgage holders find the idea attractive, as the honeymoon rate home loan often comes with a substantially lower interest rate for a set introductory period of around six to twelve months. After the initial term, the interest rate generally reverts to the standard variable mortgage rate offered by that lender.
While honeymoon rates sound tempting, always compare the ‘comparison’ rate on RateCity’s home loan calculator before committing to a mortgage. This will help to ensure that you know what you’ll be up for in repayments over the life of the loan.
The comparison rate
The comparison rate (also known as the ‘Annual Average Percentage Rate’ or ‘AAPR’), calculates the average interest rate plus any ongoing or upfront fees over the life of a home loan. This is handy if you’re considering fixing some of the mortgage or have a honeymoon rate that will revert dramatically to a higher interest rate after the introductory period.
Calculate the best home loan options by comparing home loans online and estimate your repayments and total interest paid with the repayments calculator.