Loans – Comparing Home Loans and lenders

When you are getting ready to purchase a home, securing the financing that you need can be a confusing process. Opting to apply with just one bank can end up costing you thousands over the life of your home loan. The best way to save money and maintain lower mortgage payments is by taking the time to compare home loans and lenders. Here are some tips for successfully finding the best deals.

Pay Attention to Rates and Fees

Home loan rates are important, but the fees that you’re paying when you take out a mortgage can quickly negate any savings offered by a lower interest rate. This is why it’s important for you to calculate the total price that you will be paying for your home. There are calculators available online that let you determine how much you will have paid of your home loan after all of the fees associated with the loan are taken into consideration.

Enlist the Help of a Mortgage Broker

Brokers are tasked withhelping you find the best deal for your home loan. The fact that brokers are able to provide you with several quotes from a variety of lenders at the same time means that you can determine which offer provides you with the lowest total payment on your home.

This is just one of the benefits of using a broker. Mortgage brokers are professionals who develop professional relationships with lenders. While you have little pull when it comes to negotiating deals with lenders, brokers can use their experience in the field and their established relationships with banks to get you the best rates.

Keep Customer Service in Mind

What would happen if you realised that you forgot to send a mortgage payment? It’s important to keep an open line of communication with your lender when problems arise, but this means that you need to choose a lender that is easy to reach. You may believe that customer service is a low priority when it comes to choosing a lender, but you’d be surprised to find out how often you need to talk to a bank representative. You should research reviews given by other borrowers about the lenders that you are considering. Unresponsiveness is a red flag that should send these lenders to the bottom of your list.

Use a Loan Comparison Tool

There areloan comparison tools online (eg: Mortgage Choice) that allow you to easily compare the total cost of two of more loan options side-by-side. While you have the ability to do all of the calculations on your own, having a clear outline of the total costs of your lending options makes it easier to determine which choice is better for you now and in the long term.

Think About the Future

Determining whether you can handle the upfront costs of a mortgage is one thing, but what about your future financing needs? Special features of a home loan including redraw facility or flexible access can play a big role in your ability to tap into the equity in your home in the future, without incurring extra costs.

Borrowing to buy a home is likely to be the most important financial decision of your life. Use the tips outlined above to compare home loans and lenders to get the best deal on your mortgage.

Help is at hand

If you need help with financing or purchase decisions, especially structuring, then give Noel a ring on 9585 7555 or email us atnoel@noelmay.com.au