Only last week ( March 2018 ) ASIC admits that comparison rates don’t work
If your loan is anything other than plain vanilla then getting an accurate comparison can be complex. Comparison sites struggle with all but the most basic scenarios especially for larger loans, loans that have multiple security properties involved fixed interest rates, loans with guarantor or trust etc then it can become very complex. Unfortunately lenders don’t always make all fees or even the loan features clear, in fact it is often what they don’t say that is the important thing to know. And they certainly don’t usually publish their “best rate” on their web sites. Not all lenders will negotiate but many do and for loans over $500,000 with good equity a discount can often be negotiated. At the same time do not let yourself be lured by discount claims, you must look at the bottom line and compare loans based on how much will this loan actually cost.
You need to understand how to really compare what’s available on the home loan market then we have always believed that the best way to compare two products apart from their features, is to decide on a period – say 5 to 7 years and compare how much one home loans costs in absolute dollar terms when compared to another. It is quite a complex calculation however we take the actual amount you will pay in interest plus all known upfront, exit and ongoing fees. This allows you to see in simple dollar term a full home loan comparison. Of course we then show you the features and benefits that will then allow you to come to a fully informed decision.