How to Shop for the Best Home Loan

The Australian home loan market is very competitive and as interest rates continue to move, competition is hotting up. With increased competition and information accessibility, it is up to consumers to take responsibility for researching and locking in the best home loan deal.

Getting a home loan is one of the biggest investments of your life, so it is important to get it right. Choosing the right home loan could save you as much as $100,000 over the life of a standard loan. Getting the wrong home loan is a costly mistake that you will pay for many years and could even result in the loss of your home.

MyRate.com.au offers one of the most competitive home loans on the market so they are a regular candidate for people looking for the best home loan. Visitors to the site have access to an extensive range of invaluable information through the ’Education Centre’, aimed to assist visitors in their research and empower them to make better decisions throughout the entire loan process.

There are several types of mortgages available so it is important to familiarise yourself with what’s on offer to ensure you select the right product for you.

When shopping around for a low interest rate on a standard variable loan, it is important for borrowers to pay attention to the comparison rate to more accurately compare loans and potential savings from different lenders. The comparison rate is the current rate combined with any foreseeable fees and charges over the term of the loan. All lenders are required by law to display a comparison rate alongside their advertised rate so if it is not easily apparent, ask the lending representative where you can find it in the information or material you have been given.

Many new products on the market have high comparison rates which should be closely scrutinised. It is important for borrowers to be wary of honeymoon, introductory or low interest rates with high comparison rates. These are usually used as a marketing tool by the lender to initially attract the borrower. These loans will often be accompanied by higher fees, restrictions on repayments, and/or higher interest rates following the introductory period.

The comparison rate on MyRate’s Advnatage Rate Loan is exactly the same as the interest rate because they do not charge any fees on standard applications.

You should also consider a lenders reputation. This does not mean that you have to choose the biggest or most popular, but make sure your lender has a community of satisfied customers. Customer testimonials can provide you with a more complete picture of a particular mortgage lender and their approach. Since its inception, MyRate has received a swag of awards and has consistently been rated highly by its customers.

There is an abundance of useful websites that report on competition in the home loan market to assist you in your research. The following sites are worth checking out Mozo, Info Choice, Rate City, and don’t forget MyRate’s Education Centre, where you can learn how to avoid being misled.

ABOUT MYRATE

My Rate Home Loans is Australia’s leading direct home loan lender, funded by ING Bank (Australia) Limited. MyRate’s founders are specialists in the internet space, having previously pioneered services for the online management of business finance, personal loans, car finance and insurance, travel insurance, life insurance, income protection and home and contents insurance. Using innovative technology, MyRate provides unconditional loan approvals in five days guaranteed. Visitors to the website www.myrate.com.au gain free access to an extensive rate comparison feature, calculators and guides. Visit online now or call 1300 663 558 for more information.