seek ad­vice in tak­ing out loan

The Advertiser - Real Estate - - Home Finance -

TO the ca­sual ob­server it may seem as if all home loans are the same. With hun­dreds of loans avail­able from dozens of lenders, how­ever, there are plenty of dif­fer­ences of which bor­row­ers should be aware.

Do you want a line of credit, or is a re­draw fa­cil­ity bet­ter for you? Would you like to draw down the bal­ance in in­cre­ments? Should your loan have a fixed rate, a vari­able rate or a com­bi­na­tion of the two? How much de­posit should you have?

Wendy Spurl­ing, man­ager of ad­vice and dis­tri­bu­tion at Aus­tralian Cen­tral, says one of the best de­ci­sions you can make when looking for a new home or re­fi­nanc­ing is to speak to an ex­pert.

‘‘Con­sumers are con­stantly bom­barded with ad­ver­tis­ing about in­ter­est rates, fees and spe­cial of­fers, but a lot of this doesn’t make sense to the av­er­age bor­rower and they need some­one to talk them through all the jar­gon,’’ she says.

While it of­fers its own home loans, Aus­tralian Cen­tral searches the mar­ket­place to find the right loan for in­di­vid­ual bor­row­ers, based on their cir­cum­stances and sit­u­a­tion.

‘‘Our way of do­ing things fo­cuses on find­ing a loan that suits an in­di­vid­ual, which isn’t al­ways an Aus­tralian Cen­tral loan,’’ Ms Spurl­ing says.

‘‘You might be able to find a loan with a great in­ter­est rate, but that doesn’t nec­es­sar­ily mean that it will fit in with your life­style or plans for the fu­ture. Speak­ing to an ex­pert with ac­cess to a whole panel of lenders is one of the best ways to find the right loan to suit your cir­cum­stances.’’

Wendy Spurl­ing, of Aus­tralian Cen­tral.

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