There are so many options available when it comes to choosing home loans and mortgage lenders for your new home. With competitive features and offers, there are better opportunities for you to secure a good home loan deal. To help you narrow down your search, consider these five key qualities of a reliable mortgage broker.
1. The interest rate
We can all agree that price is a major concern in a home loan. Over the term of your loan, even a small difference in the rate you pay on your interest rate can make a huge difference to the overall cost of your mortgage. So checking around for a competitive rate before signing your new home contract is a sensible step to take. That said, it is also important to consider additional features of different home loans apart from the interest rate. After all, changes to the housing market forecast and interest rates over the lifetime of your loan are inevitable.
2. The loan type for your new home
For new home builds, choose mortgage brokers that will cater to construction loans. A construction loan is a mortgage agreement specifically tailored to people who are looking to build a new home. The amount you are allowed to borrow is partly determined by the estimated value of the property upon completion. Choosing the right type of home loan for your needs makes it far easier to achieve your property or home ownership goals.
3. Loan features
Home loans have become far more flexible in recent years. There is a range of different features that can be used to pay off your loan sooner or help you manage your money more effectively. Beware of home loans with very low rates and do not provide the breadth of features, as they could prove to be costly in the long term.
4. Hidden costs
A cheap home loan can come with a raft of fees that can ramp up the cost. Some of these fees may be taken into account in the loan’s comparison rate, which incorporates the headline rate as well as upfront and ongoing monthly fees.
But the comparison rate doesn’t take all fees into account.
The cost of using redraw, for example, isn’t included in the comparison rate. This makes it essential to know exactly what sorts of fees a mortgage lender charges and how they could impact you.
5. Service
When you are approaching a mortgage broker you have never dealt with before, it can be hard to find out the quality of service you will receive in sourcing the best home loan. A useful starting point to gauge customer service – ask friends, family or work colleagues who are already on the property market or use the internet to read online reviews.
When you’re looking to building a new home, the process of choosing a home loan and mortgage lender is a lot easier when you speak with a local broker such as Aussie.
Aussie does not provide any financial or investment advice. This article has been prepared as a factual guide only. It does not take account of your objectives, financial situation or needs. Aussie recommends that you seek independent financial advice and obtain your own professional legal and taxation advice before making an investment decision.
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Zoe Langenberg
Zoe is passionate about coffee and interior design. You can find her most weekends exploring an art gallery or devouring a good book.
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