What you should look for in a home loan?
THERE are literally hundreds of different home loan options on the market. You really need to do your research and collect all the information available for each product you’re looking at to be able to make an educated decision on the best one for you.
Don’t just look at the interest rate – check out all the features of the home loan.
Decide which ones are important to you and which are not.
Are you allowed to make extra repayments on the home loan? What’s the establishment fee? Is there a re-draw option? Are there hefty exit penalties? Are there considerable monthly fees? Can you take your mortgage with you when you move house?
As a general rule, the lower the interest rate the fewer the features and the less flexibility available. You commonly find this with a basic variable loan.
Determine whether you want a fixed, variable or split loan, and what is going to work best for you long-term and not just in the near future. A home loan is generally taken out for 30 years, so consider your future plans as well as your current position.