How Do I Chose the Right Home Loan?
✅There are hundreds of bank and non-bank lenders in the market. And within these lenders there are 1000 products. There is a skill to finding the right loan for your individual circumstances. A mortgage broker is equipped with knowledge of a panel of lenders and not limited to the few products within a single bank or entity.
✅Randomly selecting a bank from an advertisement or going with the bank you've always used could be detrimental to your future goals. They can only offer that product, and how will you know if there wasn't something better for your circumstance.
Talk to us - no fee service
Bank versus Non-bank Lender?
✅Don't get caught up with the BIG 4 banks, unless of course, that is the best option for you. However, there are many white label products held with banks, credit unions and private lenders that you may have never heard of that are well worth your consideration. Your mortgage broker should be across these lenders and sometimes they can be a great way to get started if the large banks say no.
✅Every bank and tiny lender has their niche - something they do better than most other lenders on the market. Your mortgage broker should know, or at least be able to research, the lender that speaks to your current position. You can always refinance out of this product down the track when your financial position improves or your needs change.
Features?
✅If you're willing to make extra repayments then you should be looking for options with an offset account. This will allow you to reduce your interest rate bill over the life of the loan. And don't underestimate the power of compound interest and the difference small consistent extra repayments can make. I have plenty of examples on my blog so I won't go into that here.
✅How quickly do you need your loan approved? Has your offer just been accepted or have you just started home shopping? Your broker may need to get you approved with the 2nd or 3rd best option and then refinance you out in a couple of years to avoid you missing out. That's fine!
✅Internet banks and online lenders sometimes give you more competitive rates. It depends on your situation and the niche you fall within, so don't get caught up in needing a bank that has physical banks on every corner. Remember those branches cost money, and at some point, you have to expect to pay more for this option.
✅Fixed versus Variable. Once again you should talk this over with your mortgage broker. RBA chief Dr Lowe has stated that he expects rates to stay low for three years. Fixed rates are lower than variable at the moment, which shows the market believes him. Depending on your circumstances it may be a good idea to consider a fixed rate option. You can always refinance into something else after the fixed term if it no longer meets your needs. Once again, all facets of your circumstance must be considered, so have your broker explain this to you.
✅Which niche do you fall within? What lenders are aggressive and competitive in the space you fall within? You won't know unless you research the hundreds of lenders. This is why, in my opinion, speaking to a mortgage broker is the best decision to make before approaching the banks. Mortgage Broker Revesby doesn't charge a fee and gets paid via the lender. They will lodge all paperwork and guide you through the whole process. A no brainer!
Talk to me about your loan
No fee service.
Matthew Stack
matthew@mortgagebrokerrevesby.com.au
www.mortgagebrokerrevesby.com.au
0423 237 242
#howtochoosetherighthomeloan #homeloan #mortgagebroker #mortgagebrokerrevesby #mortgagebrokersydney
Comments
Post a Comment