How do I know I’m getting a good deal from my home loan lender?

With so many products offered by various lenders, it can be quite perplexing trying to figure out whether or not you’ve scored yourself a good deal on your home loan. 

While doing your research and comparing what’s out there in the market is one of the most obvious ways to find out whether you’re sitting on a good deal, it can be a time consuming practice and an overwhelming experience for those without specialist knowledge of the mortgage market.

It’s good to shop around on comparison websites, but because lenders call like for like products different names - it can get very difficult comparing apples with apples.

Mortgage Brokers know the special names and pricing, so it’s worthwhile working with one as not only will it save you time but you’ll also get a well-rounded understanding of the advantages of each product.

That understanding of each product’s pros and cons is essential, because a good deal isn’t necessarily just the one with the lowest interest rate. It ultimately comes down to finding a loan that suits your plans - whether those plans are to pay the loan off as quickly as possible, to use it to fund renovations or investment down the track, or to pay the lowest total interest and fees over the life of a loan – and to finding a lender that will provide that loan at the level of finance required.

Imagine you want to buy your dream home. Different lenders will lend varying amounts based upon the same criteria. For example, that could mean that the lender with the sharpest interest rate may lend $200,000 less than the one with a slightly higher interest rate. If you really want to buy your dream property, you’re going to have to go with the one with the higher interest rate in order to take it off the market, which may only make a few thousand dollars difference a year in interest repayments.

Mortgage Brokers have specialist knowledge of products from multiple lenders, to ensure you are getting a great deal that meets your needs.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.