In fact the best home loans Australia has on offer changes almost daily. Banks continually change their product line up and tweak their offers to attract different segments of the market all the time. In order to find the best home loans Australia has at any one time you need to locate a favourite web site that continually updates the information and provides links to various unbiased information sites.
It's all a matter of choice but as a guide to what to look out for here are some tips on choosing your best sources of information as you search for the best home loans Australia has on offer.
1.Individual Banks and Lenders sites will only contain information about their own products. Sometimes the information may say things like ?Winner of Best Home Mortgage 2006? or something similar. This may be misleading, simply because the category of the award may not suit your circumstances or needs. Also it does not mean that it is the best rate. Awards are judged on different criteria and you need to know what these are before you can judge the products they are claiming to be the ?best?. 2.Not all banks or lenders have sites that fully explain how their products work. It is a simple fact that home loans are very complex and each individual applicant will have special differences. It is these differences that make choosing the best home loan from web site information almost impossible. 3.Generic information sites like infochoice and Cannex have an amazing amount of information that may point you in the right direction. They also offer an unbiased approach. However, they also have so much information that it is difficult to fathom your way through the information which is relevant to you. 4.Mortgage Brokers often have the most relevant information to make your decision making easier. This is because they can filter out the less pertinent products and information and narrow your choice. This certainly makes life easier for you, provided you choose the right Broker. 5.Most Mortgage brokers sites are difficult to find and often they fall into the same category as the banks, ie a lot of information but nothing specific to your needs. 6.Look for Blog sites where you can see how up to date the information is. Anything more than a week or so old may indicate stale information.
Don't despair however. Once you find a Mortgage Broker you can trust, either through a recommendation from a friend, or simply calling a few and comparing their approaches, you will be well on the way to finding the best home loan Australia has for you.
You can ask the same questions and see what answers you get. Hopefully the information you receive will be consistent and your choice will then probably be based on how comfortable you felt during the discussion.
1. What rate are you paying'If you're paying the standard variable rate, you shouldn't be. There are better deals around. Anyone still paying standard rates for their variable loan should look at other alternatives as you more than likely will save thousands by simply switching to a lower rate loan such as Basic or Discount variable loans. Consider our Advantage Rate Loan.Most believe that Basic or Discount variable loans have generally less features than a Standard variable loan. Watch out for basic variable loans that don't offer flexible features. They offer cheap rates, however you can't save because they simply won't let you since some don't even allow for additional repayments.This is not the case with our fully featured Advantage Rate Loan. With unlimited redraw, salary crediting, unlimited additional repayments and one of the most competitive rates around you can easily save thousands.2. Pay more often and a little moreDividing your minimum monthly repayment into two fortnightly payments can reduce the term of your loan because there are more than two fortnights in every month. Dividing your original monthly repayment into two means you actually pay more over the course of a calendar month. Also, when interest is calculated daily, the more frequent your repayments results in less interest being charged to your loan over the course of a month.Add to this a small amount every fortnightly you can comfortably afford over the minimum required repayment and you will slash years of the term of your loan.3. Make your surplus cash work harder for youUse cash savings to help pay off your loan quicker. If you have a home loan rate at say 7 per cent, every extra dollar you pay off the principal is another dollar you are not paying 7 per cent on each year. If you instead put that extra dollar into a savings account you are only going to earn 2 or 3, perhaps 5 per cent at the most and you'll pay tax on these earnings. Therefore putting savings into your loan earns you twice as much as a savings account and you keep the tax man from your surplus cash. These days, redraw facilities available on most variable loans allow you to take back those extra payments if needed anyway. 4. Consolidate any other loansAlways consolidate any high rate unsecured loans such as personal loans, car loans, store and credit cards with your home loan if you have equity in your home.Some people will advise you against consolidation because the loan terms for unsecured loans are generally less than mortgages. You are still better off consolidating if you can with a low mortgage rate, while still maintaining the repayments you had with your unsecured loans. By doing this you will payoff your total debts faster with a much lower rate of interest and save thousands.5. Watch out for the lure of a honeymoonOften introductory or honeymoon rates are a con, enticing you with a low rate in the first 6 to 12 months and then, after the honeymoon, mugging you with a high standard variable rate. Look for a fully featured basic variable rate such as our Advantage Rate Loan that offers a competitive rate for the life of your loan rather than just a honeymoon period.6. Quit that smoking habitIf you smoke a pack of cigarettes a day, it is costing you more than $3,000 a year. Quit, and put the daily saving of $10 or so aside and pay an extra $300 each month off your mortgage. You may look for other costly habits that you can quit and apply these savings to your home loan.
Both Mikeyh & Abdul Hayi Mansoor are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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