Choosing the right lender for your specific circumstances is, quite literally, my job description as a Mortgage Broker. I want to give you some insight into the thoughts and processes that form part of this decision and result in you walking away withe the perfect home loan. You might be surprised to find that the ‘lowest rate’ isn’t always the highest priority!
First things first, do you have a preference for which bank you’d like to use? Perhaps you have a definitive idea of one or more banks that you definitely do not want to use (Like the Big 4)? This preference can be based on positive experience with a bank you’ve used for years, or negative things you’ve heard from friends or in the media. Whatever your inclination, this is an important factor in the decision due to the long-term relationship you’ll have with the lender. Home loans can be a 30 year commitment!
Each lenders’ policy differs greatly from the others. If your unique circumstances don’t fit within a particular policy, your mortgage application is dead in the water. This is why a preliminary assessment of your circumstances is undertaken, including; employment type and length, income and expenses, living and family situation, purpose of the loan, eligibility of the security, previous customer behaviour, and savings pattern.
The next test to narrow down the selection is Practicality. Does that lender offer the Offset Facility you desperately want? Will that lender be able to assess and approve your application in time for your last minute settlement? Does the lender require you to do a face-to-face identification meeting at the nearest branch which is 2 hours away from you?
Finally, we come down to the easiest variable – Price. This doesn’t only include the interest rate, but also any Application Fees, Settlement Fees, Risk Fees, Lenders Mortgage Insurance, Monthly or Annual Ongoing Fees… All of these costs need to be assessed and evaluated when comparing suitable lenders.
With over 40 different lenders to choose from, these are the processes I use to narrow it down to the top 3 to 5 – then the choice is over to you!
For more information call Ellen on 0423688756 or get in touch here.