Q:  When buying a house, do you just purchase the first one you see advertised?

A:   No, of course not. You make a list of suitable properties, go to open house inspections, undertake due diligence, research the neighbourhood and do everything you can to narrow down your options to that one perfect house.

So why don’t we do the same for our home loans? Why is it that we often just rush blindly in and take the first loan we’re offered without shopping around and seeing if there’s better or more suitable options available?

Here at Contour Finance, we believe that the ‘right’ home loan isn’t necessarily just the one with the best interest rate. Admittedly, this is a very important factor and it’s essential to make sure that it’s competitive and within your terms. But there are also some other considerations you should bear in mind as well.

So, to help you home in on the right home loan, we thought we’d do an ‘open inspection’ and highlight a few key pointers you should consider when hunting for your next lender.

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‘BUILT IN’ FEATURES

Home loans, like homes, come in all shapes and sizes, from basic to boujee, simple to sumptuous.

But here are some of the key features you should consider in your next loan:-

• The option to make extra repayments – This can help you pay less interest and pay off your mortgage quicker.
• Offset accounts – a transaction account linked to your loan, which can help reduce the interest you pay.
• Redraw facilities – These allow you to claim back any additional payments you might have made on your home loan.

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TO FEE OR NOT TO FEE?

Fees are the sting in the tail that can make a seemingly eye-catching home loan into a costly and frustrating exercise.

Some of the ones to look out for include:

• Application fees.
• Property valuation fees
• Legal fees
• Lenders mortgage insurance

In the long run, a less appealing interest rate with lower fees may work out to be cheaper than a competitive interest rate with higher fees.

Always double-check if the features included in the loan or as ‘add-ons’ are actually worth having. They may include extra monthly fees that make you exceed your budget instead of saving money for the next repayment.

To help you get a better picture of your loan, always make sure you get a comparison rate in addition to the standard interest rates. This will give you a much truer indication of how much your loan is really going to cost you.

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LENDER HAND

Some lenders give you just enough customer service to get you signed up for their loan and then basically abandon you, whilst others go above and beyond to provide superlative service at every stage of the proceedings.

In the interests of maintaining your sanity and reducing your stress levels, we strongly advocate that you go with a lender who goes the extra mile to help you during the application process. Make sure they are swift to respond, open, flexible and above all, that they process your applications in a smooth and timely manner.

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FIND THE RIGHT B(LEND)

Not all lenders are going to want to give you a loan. Some are more risk averse than others, so they make their lending criteria super-strict.

The most important thing for you is to make sure that you don’t end up being rejected. This can damage your credit score and make the already tricky loan approval process even harder.

So, shop around and find the right lender with a set of criteria that fall comfortably within your wheelhouse, such as giving quick approval or having a good self-employed policy etc.

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YOU FIND THE HOME; WE’LL FIND THE LOAN

Getting a home loan can sometimes seem like you’re caught between a rock and a hard place. On one hand you don’t want to wait too long to find a loan because the price of the property you are bidding on is likely to increase. But on the other hand, you don’t want to rush into the first loan you’re offered and end up getting stung further down the track.

Thankfully, Contour Finance is here to help. Our highly skilled and dedicated team have 25+ years of lending and wealth management experience, and access to an extensive array of lenders and loan types.

This means we’re set up to secure the most suitable solution for you; one that strikes just the right balance between interest rates and other conditions.

So talk to us today and let us find you a home loan that perfectly accommodates your needs.

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