Compare My Home Loan
While the home loans are being compared, only the interest being advertised at lowest rate should never be given full preference as there are various other factors to consider. These additional factors play an active role to help the clients compare their home loans with more accuracy, which are disc used below –
- Set–up Fees: In spite of the upfront costs being appealing, yet there is an ardent need to check the different types of fees being accessed each time for redraw facility. Notable among the common loans are the application fees, establishment fees, valuation fees, legal fees, documentation fees, certain ongoing monthly fees and settlement fees. Each of these fees ought to be checked at the time of making home loan comparisons.
- Redraw Limitations: There might be instances when the lenders are going to be imposed some specific limitations on the redraw facilities, and it is attached to the lenders’ basic variable home loans. The minimum amount which can be redrawn is too charted with a certain restriction. Even some fee could be charged while the redraw facility is being accessed. Therefore, it is required that whether these very restrictions are applicable to making a proper comparison of the home loans.
- Comparison Rates: Any basic variable being considered has to be first checked of its comparison rates, as the comparison rates perform the function of adding the interest rate, setup fees, and the ongoing fees together. The figure obtained is expressed in form of a percentage. The percentage figure shows the amount of loan which will cost the client which could be minutely different from the advertised interest rate. In case if it is seen to be considerably higher then the client can have the complete information that they are making extra fees payments and costs above the interest payments at some place. The mortgage amount, as well as loan term, determines the comparison rate for being calculated so that the buyers can ensure that they are receiving the proper comparison. For the benefit of the customers, the comparison rate tool identifies a loan’s true cost and used for comparing different loans being lent out by different lenders