Wouldn’t it be nice if you could just look at a simple table of features and costs and decide which are the best home loans for your needs. However we don’t all drive the same cars because we all have different expectations and values – home loans offered by different lenders are just any other off the shelf product. Good mortgage brokers won’t just answer your questions – they will look for questions and options that you may not have even considered.
Is the lowest interest rate the best home loan? – well that all depends
For many lucky people the lowest rate can offer a very good outcome but please don’t confuse the best home loan with the cheapest interest rate. Some cheap home loans restrict additional repayments or charge redraw while others may have big application fees. We can provide you with detailed comparisons including fees and charges.
No home loan is ideal for everyone
The investment loan market has been turned on its head by the regulators however we can still offer fixed or variable interest rates well under 4% however – these loans aren’t suitable for everyone. We have around 25 different lenders and each one of them has a different policy while basic considerations such as borrowing capacity can vary by tens or hundreds of thousands of dollars between lenders. Don’t forget that a lot of the lowest interest rates often have low LVR ( loan valuation ratio) or very high establishment costs or in some cases are only available for refinance – where as some lenders are currently refusing refinance …. there is no single rule that applies to all lenders.
We can often negotiate discounts well below what you see on the web
Lender’s argue that their margins are very tight however the reality is we can negotiate discounts with many lenders that would have been unthinkable 2 years ago. It pays to shop around but direct contact with lenders can generate inquiries on your credit file and too many of these become a major cause of rejection, so why not let us do the shopping and keep your credit history nice and clean.
What makes the Best Home Loan
Lenders all have different attitudes as to what makes the ideal customer for their focus. This means that there are niches that can make one lender’s offering significantly more suitable for you, even if it is not the lowest interest rate. A good example is “Medico Policy” where doctors are often exempt from paying LMI up to 90% with the big banks – but some banks will also allow this exemption for suitably qualified accountants, lawyers and engineers. Other examples where your circumstances may or may suit a lender:
- if you have started a new job some lenders will lend 95% while many will only do 80% with conditions
- likewise if you are on probation most lenders are not interested while a few are happy to do 90% plus
- self employed contractor may have to wait 2 years with some and no wait at all with others
- some lenders insist on genuine saving for first buyers while some don’t really care
- maximum LVR can range from 85% to effectively 99% – ( 95% plus uncapped LMI of 4%)
- not all lenders offer construction loans and some who do, shouldn’t!
- many lenders won’t accept guarantors while many will force the guarantor to refinance their existing loans to them
- many lenders don’t count your overtime or heavily discount it while other won’t accept bonuses
- if you are about to take maternity leave – you might get an unpleasant surprise with some lenders
These are just some of the many policies that can catch you out and result in a failed loan application – which then shows on your credit report and creates even more headaches. The answer is simple, call us to discuss – even if you think you have made your mind up, why not get an independent second opinion, no cost and no obligation.
Home loan interest rates the news just keeps getting better
Several lenders are still offering variable interest rates below 3.60%. However we also have great fixed rates with free interest rate lock and 100% offset accounts making them a serious consideration for many borrowers…. see our page on fixed interest rates where we discuss the pros and cons of a fixed rate home loan..
At the risk of repeating ourselves – no two borrowers are the same and so we strongly recommend that you let us do our job and professionally assess your requirements and suggest the home loans best suited to your needs from the wide range available from our panel of lenders. Of course no mortgage broker covers the entire market but our panel is a good cross section of large banks, second tier banks, mortgage managers and building societies.