seek advice in taking out loan
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.