Top 5 things to consider when choosing a home loan

There’s a lot to consider when choosing a home loan. From securing a fair interest rate to making sure you’ll get approved, and in time! Here are our top tips on what to consider when choosing a home loan:

Am I getting a fair rate?

Making sure you get a competitive rate will have a big impact on the overall cost of your home loan. Lenders will generally advertise the current interest rate and a comparison rate. So, be sure to check out your options. Some lenders may even have an introductory — or honeymoon — offer that provides low short-term interest rates. 

Will I use all the bells and whistles?

Home loans can come with many bells and whistles, but will you use them all? It depends on your financial habits and what your needs are. Home loan features can include mortgage offset accounts, redraw facilities, repayment holidays, interest-only payments, credit cards, and waived exit fees. 

Does the lender align with my values?

Finding a lender who aligns with your values is becoming an essential part of choosing a home loan — together with ensuring you still get a good deal, of course. So, for example, you might consider choosing a bank that doesn’t invest in fossil fuels, or one that’s committed to gender equality, if these are issues that are important to you.

Will I get approved and in time?

Generally, getting your home loan approved will take anywhere between 4 to 6 weeks from submitting your application to securing settlement on your property. However, remember that time frames will vary, depending on demand, and the complexity of your situation. 

What fees and charges will I have to pay?⠀

Fees and charges can make a big difference to how much you end up spending on your home loan. Take note of the many types of fees and charges there are, and how often they’re accrued. Also, consider asking your lender for a better deal. Find out if there are any interest rate discounts or fees that can be waived. Common fees include establishment fees, monthly or annual fees, valuation fees, legal fees, exit fees, and lender’s mortgage insurance. 

We can help you uncover the answers to these questions and more, plus narrow down the thousands of home loan options available.

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