How do I know I'm getting a good deal from my lender?
Published by MFAA
With so many products offered by various lenders, it can be quite perplexing trying to figure out whether or not you’ve scored yourself a good deal on your home loan.
While doing your research and comparing what’s out there in the market is one of the most obvious ways to find out whether you’re sitting on a good deal, it can be a time consuming practice and an overwhelming experience for those without specialist knowledge of the mortgage sector. For example, lenders call like products different names so it can get very difficult comparing apples with apples.
Brokers know the special names and pricing, so it’s worthwhile working with one as not only will it save you time but you’ll also get a well-rounded understanding of the advantages of each product.
That understanding of each product’s pros and cons is essential, because a good deal isn’t necessarily just the one with the lowest interest rate.
It ultimately comes down to finding a loan that suits your plans – whether those plans are to pay the loan off as quickly as possible, to use it to fund renovations or investment down the track, or to pay the lowest total interest and fees over the life of a loan – and to finding a lender that will provide that loan at the level of finance required.
Imagine you've found the right property. Different lenders will lend varying amounts based upon the same criteria. That could mean the lender with the sharpest rate may lend less than the one with a slightly higher rate. If you really want that property, the product with the lowest rate won't be the one that let's you purchase it.
MFAA Accredited Finance Brokers have specialist knowledge of products from multiple lenders, to ensure you are getting a good deal.