Comparing different home loans is time well spent.
Ask for a key facts sheet from different lenders (they’re legally bound to provide a fact sheet for home loans if you ask). Check out our loan comparison calculator and compare interest rates, fees and charges and potential features of the loans you’re looking at.
It’s also a good idea to do due diligence on the mortgage broker or lender you’re considering. Some people make a commission if they persuade you to switch loans and may leave out important details or even give you false information.
There’s usually some kind of costs when you switch your home loan over – your best bet is to weigh the costs against the benefits of the new loan.
Check for exit fees, break fees and start up fees, and include these in your comparison. Lenders aren’t allowed to charge exit fees on loans taken out after 30 June 2011.
If your new home loan is more than 80% of the current value of your home, you’ll need to pay Lenders Mortgage Insurance, even if you’ve already paid it in your current loan.
Tip: Take note of the length of the loan your new lender is offering you – it may be less than your current loan, which means higher repayments.
Before you decide to switch home loans, think about making your current loan work better for you. Talk to your lender about why you’re considering moving your mortgage to another provider and ask them if they can offer you something better. Compare their offer with any other loan you’re considering. You could also ask your lender to consolidate multiple loans into a single loan with a lower interest rate and one set of fees.
Get clear on what you want, and check if:
you’re paying for features you don’t use, like a redraw facility, offset account or line of credit. Keep in mind you pay for extra features with higher interest rates, just like a credit card.
your payment structure is working for you. Rather than paying monthly, you could make additional payments, or schedule slightly increased payments weekly or fortnightly to reduce your home loan faster. Check out our repayments calculator to see what effect extra repayments would have.
Whether you’ve got a hunch you’re not getting the best deal on your home loan or you’ve found a great home loan from another provider, make sure you do your research. A home loan is probably the largest loan you will ever have, so it makes sense to get the best possible deal.
Talk to the QBANK home loan specialists. Call 13 77 28.
To provide a further understanding of their roles, and an insight into the person behind the responsibilities and what they entail, QBANK presents a series of interviews with Members of our leadership team.
Today, QBANK announced that it will reduce interest rates on fixed rate home loan and deposit products.
To provide a further understanding of their roles, and an insight into the person behind the responsibilities and what they entail, QBANK presents the first in a series of interviews with members of our leadership team.