Which Bank Has The Best Home Loan
If you are in the market for a home loan, whether to buy your first home, upgrade to a larger home or are just looking to refinance, do you know what bank can give you the best offer? There are so many different types of loans to pick from and a vast number of lenders to choose from. From the big Australian banks like NAB, ANZ and WestPac to smaller local banks and even non bank lenders, it can be confusing. Here is look at what you need to know to help you decide on the best home loan for you.
Different Types Of Loans
The first step to finding out which bank has the best loan for you is to decide what type of loan will best fit your needs. Here is a look at the most common types of home loans that are typically available.
- Variable Rate Home Loan: Traditionally, the variable rate home loan has been the norm in Australia. Variable rate loans fluctuate with the current bank interest rates so your loan payment can go up or down when interest rates change. Variable rate mortgages typically have the lowest starting rates and offer home owners more flexibility in terms of paying off your loan early and more.
- Fixed Rate Home Loan: The fixed rate home loan seems to be coming more popular as Australians worry about interest rate hikes. A fixed rate home loan offers you the stability of a fixed interest rate which means your monthly loan payments will always be the same. These loans do tend to have more fees and less flexibility.
- Mixed Rate Home Loan: The mixed rate home loan is a combination of a variable and fixed rate loan. You get to decide how much of the loan you want fixed and home much you want to be variable. Many people like this loan because it allows some of your loan to be stable and some to have more flexibility. Many consider it a win/win situation.
- Honeymoon Rate Home Loan: The honeymoon rate home loan is a variable rate loan that offers home buyers the option of starting their loan with a low introductory rate that usually lasts for about a year. Once the introductory time is up, the loan adjusts to current rates. This loan is especially popular with first time home buyers who may be looking to keep some extra cash in their pocket initially for other home related expenses.
What Different Lenders Offer
Once you have decided what type of home loan will be best for you, it is time to start comparing different lenders so that you can find the best deal. The Big banks tend to offer better perks like multiple payment options, 24 hour customer service and more. The smaller banks and private lenders may have less perks but at the same time often have slightly better interest rates and other incentives to lure you in.
Comparing Different Loans
So how do you decide which bank or lender to get your loan from? A great tool to use is a home loan comparison website. These sites allow you to compare multiple offers from literally thousands of lenders until you find one that is perfect for you. Simply enter the requested data and you will be amazed at how quickly you can look at numerous loans that fit your criteria. You will be able to see the going interest rate, how much your monthly payment will be, loan terms and more. Using a comparison site makes your job an easy one and before you know it you will have found the best home loan for you.
This article was written by Tomorrow Finance – home loan comparison specialists. Try their free calculator on their website www.tomorrowfinance.com.au