Where Can I Find The Lowest Home Loan Rate?
If you want to find the lowest rate home loan, you may be doing yourself a disservice.
Like most consumer products, a cheaper price doesn’t necessarily mean the best value. In fact, the cheapest product on the shelf may be the worst on offer.
Finance is no different. Many loan products that advertise a low interest rate are lacking in other features.
This is why it is important to look beyond rates and find a loan that is suited to your needs.
Keep in mind the needs of an investor are different to those of a home buyer.
Ditch The Comparison Sites
Comparison sites are useful for comparing rates, but they don’t compare what’s actually important – the back end and features.
Some mortgage brokers are the same, being stuck in an interest rates mentality, forgetting about the structure of the loan.
For example most people wouldn’t choose a phone plan just because it is the cheapest one out there. Instead, they would consider the ways in which they use their phone, and then choose the package that offers the best value for their needs.
Loans should be no different. And, since you will be entering into a mortgage that may take 30 years to pay off, it is important to think of how your needs may change over the long term.
You don’t want to have to break your contract early and pay out the remaining interest charges.
Consider Your Needs
You may be a home-buyer wanting to apply an offset account. You may be a property investor looking to release equity in a year’s time. Either way, you will need to choose a loan that will allow you to fulfil your short and long term goals.
Will you need to redraw into the mortgage from time to time? Will you want to make extra repayments? Will you want to revalue your property to release equity within six months of the purchase date? Do you need to fix rates for a set period?
When it comes to questions such as these, comparison sites may not give you the answers you are looking for.
The cost of not considering these questions is often unexpected nasty surprises such as hidden fees, charges or exit costs.
How To Find The Best Loan
While it can be hard to sift through the credit policies of all the lenders available, a finance strategist can help you narrow it down.
By getting a clear idea of your goals, and developing an understanding of how you will need to use your loan, they can do the sorting for you.
Contrary to popular belief, most mortgage brokers don’t charge extra in the form of higher interest rates. If they do, and they don’t disclose it, they are dodgy – plain and simple.
Instead, brokers are remunerated through a commission that is paid by the lender.
A good mortgage strategist will save you hours of your precious time. Going through a good broker will give you piece of mind that you have the best loan product for your needs.