How do I know I’m getting a good deal from my 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. I see it all the time and hear the question of ‘but is it a good deal’ all the time.
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 time consuming confusing and can leave you often none the wiser than when you began. That being said it’s good to shop around, and yes you can use comparison websites, but because lenders call the same products different names, it can get very difficult comparing apples with apples.
Finance 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 and really tailoring in on what is best for your situation.
That understanding of each product’s pros and cons is essential, because the best 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, for example you’re wanting to buy your dream home. Now, different lenders will lend varying amounts based upon the same criteria. So that could mean that the lender with the sharpest rate may lend $200,000 less than the one with a slightly higher rate. If you really want that property, you’re going to have to go with the one with the higher rate, which may only make a few hundred dollars a month in interest repayments. This is often overlooked by many but can make a very big difference.
As always if you would like to have a confidential chat about next steps please let me know. I am here to help every step of the way.
Eleanor Crosby – Australian Credit License 387 419