How do I pick the best homeloan for me? What do I need to be looking out for?

Hi Pru.
That is a tough question. In my 16 years of experience there tends to be a core requirement of a low rate, option to pay extra and redraw as well as fix if and when required.
Other than those you probably need to ask the question to yourself because that is one of the very first questions I ask when I sit down with a client.
The days of heavy penalties to discharge a loan are long gone so there is far more flexibility among lenders now who all offer similar products based on the core requirements listed above.
Happy to chat in more detail at no charge or obligation when you like.

There are lots of things that you need to know about each of the Lenders products. These include: What flexibility is in the product to adapt to your changing life style? Are your circumstances different from the average person therefore will the product meet your needs?

If you're thinking of doing this yourself then there is a lot to learn about Lender credit policies, their products and how the system works.

So I suggest you talk to an expert about finance so that you make sure that you've got the best product for you. For example if your car breaks down then you take it to a mechanic as they know about cars. I suggest that you adopt the same principle about your loan and save yourself a lot of time and effort

Pru, the answer to this question comes down to your knowledge of home loans.
If you know what you want then make a list of your requirements and check that the loan you get ticks all of the boxes.
If you are new to this you could talk to your bank about getting a loan but appreciate that your bank can only provide you with their loans.
Alternatively, speak to an experienced finance professional who will help guide you to a lender which offers the things you are seeking in your loan.
These might include the interest rate and fees, interest type, i.e. fixed or variable or a combination, the ability to pay extra or provide an offset savings account plus a myriad of other features.
Note that today's lowest rate is a poor indicator to use when comparing loans.
Hope this helps.

Hi Pru

That's a broad question but nonetheless very relevant!

There are many options for homeloans the main criteria to decide on include the following:

- Interest rate: do you want to have fixed rate or variable or split
-Offset account 100% or partial or none
-Redraw facility
-Flexibility to make extra repayments
-Interest only vs Principle and interest – likely to be P/I on a home loan

Having a broker to guide you through this process will not cost you anything and will help clarify your needs and expectations which will help us source the most suitable product for you.

Kind Regards,
Jennifer Bachir
Key Finance and Investments
www.keyfinance.net.au

Hi Pru

My suggestion is to make an appointment to see a mortgage broker. One of the tasks we perform is matching home loan features and benefits to your needs. What could take you literally weeks if not months to research Will take a mortgage broker minutes to prepare A comprehensive report of suitable loan products.

A good mortgage broker will consider your short, medium and long-term goals in their analysis. Remember the cheapest interest rate may not be the best one product for you.

Hi Pru,

Unfortunately there is no simple solution to be able to decide on the best home loan for you as it all depends on a number of variable factors. Things that you should consider include:

Do you want to make extra repayments?
How do you like to save your money?
Do you follow a budget?
Would you prefer to have fixed repayments?
Do you want to do all of your banking online?
Would you prefer to package all your banking in one place?

It is best to work out what is going to work best for you - one way to do that is by having a discussion with a Mortgage Broker or Home Finance Manager of your current bank. More than happy to have a chat with you offline if you'd prefer 😊

Thanks,

Kathleen McCormick