The home loan market can be overwhelming. So many products seem good on paper, but now you’re six weeks in and you’ve realised your loan is a cat person, believes in pineapple on pizza and doesn’t like The Sopranos.
Choosing a home loan that suits your needs requires research, clarity and probably discarding a few duds along the way.
Let us be your wingman. We’ll help you figure out when to swipe right on a home loan.
Get to know yourself before you start
Close your eyes. What do you really need? A young Harrison Ford? Same. But what are you looking for in a home loan?
Think about your individual situation. Some popular features of home loans aren’t right for everyone. Start with rates: are you fixed or variable, or a combination? Do you plan to exit early, or offset your repayments with a lump sum?
Next, think about whether you’d prefer a ‘basic’ loan with a lower rate, or something whizz-bang that’s packed with features. If your job includes an annual bonus, maybe you want fee-free extra repayments. If you’re planning a wedding, a redraw facility might help you manage the budget.
Don’t be swayed by fancy options you don’t need and shouldn’t pay for. Compare home loans. Choose wisely. Don’t be ashamed to be basic.
Communicate with each other
Being clear about what you’re getting into will mean no complicated texts you need your friends to analyse over a wine. Ask your lender to explain everything clearly. What is an offset account? What are your options if you’re suddenly unemployed? What happens if the market changes?
The right home loan won’t play games with you. Be upfront and demand the same in return.
Look beyond the filtered selfies
A low rate can be very attractive, but take a pause. Some of the cheapest loans can come with high fees or minimal features. Avoid disappointing long-term prospects by looking at a loan’s comparison rate – it takes into account upfront and regular fees so you can get a more accurate picture of the true cost of the loan. ME’s Loan Comparison calculator can also help with an apples-for-apples view of different options.
Do you know what to look for in a home loan? Keep a close eye on:
- Application or establishment fees
- Account-keeping fees
- Penalties for late payments
- Redraw or early repayment fees
- Early exit penalties
Let’s be honest: you deserve a loan with it all. Good value, features you need, and the flexibility to fit into your lifestyle.
Find a loan that’s emotionally available
The best relationships are a two-way street, and it pays to look for a loan that gives something back. ME’s home loans, for example, have no application fees or ongoing account-keeping fees. We’ll also give you the freedom to make fee-free additional repayments at any time on our variable rate loans and to redraw funds at no charge.When it comes to your home loan soulmate, there’s nothing like tailored advice (and having your own in-jokes). If you have any question or want to find out more, give me a call on 0413 437 389.