Our Home Loan Tips !

6 or 12 months discounted home loans (often called 'honeymoon loans'). Be careful. Ask the following: Does the discount prevent you from obtaining a less but more beneficial discount for the whole life of the loan? What will the interest rate be on expiry of the discount period. At what cost can it be switched to an interest rate discounted for the life of the loan? Are there additional exit fees / early repayment fees attaching. These could restrict you in the future.

'Upsize' your deal - It is often possible to obtain a lower 'packaged' interest rate by applying for a larger loan than what you need, subject to your borrowing capacity, and then repaying the excess amount required as soon as the loan is funded. This can be done without the un-used funds incurring any interest or fees and at the same time these un-used funds remain available for future use. This can mean a difference of up to 0.70% less than the quoted 'standard variable interest' rate ($58 per month or $700 per annum per $100,000 loan). This approach can be beneficial refinance strategy. Note this may not be beneficial in all instances, it depends on your individual circumstances.

Dealing direct with banks - The bank officer is limited to just selling the bank loans, but this may not be the best or the lowest cost loan for you. We compare loan across the wide market.

Dealing with brokers - The broker probably won't charge you but gets paid by the lenders. BUT ask the broker for a schedule of their commission rates (they are obligated to do so if the finance is for your own home) and be sure to double check any recommendations involving lenders who pay higher commission rates. Consider asking the broker to put in writing why the particular option has been offered to you. Your Finance Options offers a free no obligation 'Your Home Loan Report'.

Loan features - Identify potential lenders and loan products that could suit your needs, not only for today, but that can work for you in the future. Professionals - Special Features.

"Product Flexibility V discounted & Packaged Rates" - It is possible to obtain BOTH discounted/packaged rates AND also achieve great product flexibility. You may not need to compromise. The entire package must suit your needs.

"Fixed rates" - Did you know that fixed rates vary significantly from lender to lender.

Given the current financial credit market problems, it might be best to bank with the leading lenders and stronger banks. We have recently seen some lenders exit the market, and in their wake as their own cost of funding increased, fail to remain competitive with the market for their existing clients even though those loans may have been cheaper when they were first taken out. These same customers are often also caught by high exit fees

Exit Cost - Be sure to weigh up the full advantages and disadvantages of loans with high exit costs.

24 hour approvals - Be careful as these are often issued a highly conditional approval to allow the lender the time to check through the documentation that you are required to provide. We recommend that you should be reluctant to commit to a property purchase without formal approval.

We consider your specific needs. For our free no obligation 'Your Home Loan Report' click here.