Brokers who are assisting their clients with home loan products should be prepared to answer any questions or concerns that arise, including informing clients on the best ways to compare home loan options.
It is highly recommended for clients to thoroughly research and compare the home loan products available to them to ensure they decide on an option that works best with their needs. Clients can go about this process by selecting a trusted broker they wish to do business with and researching the various loans being offered, then comparing them against one another to determine which option has the best interest rates, terms, and repayments for their individual needs. There are various features of a home loan that clients should compare against other home loans, including the following:
- Loan Features: line of credit, offset accounts, redraw, and fees associated
- Interest Rate per Year: interest rates being advertised by brokers
- Loan Terms: the length of time that a home loan agreement lasts
- Comparison Rate per Year: a single figure of the cost of the home loan, which includes most fees and the interest rates
- Ongoing Fees: fees that are charged on a monthly or yearly basis for administering a home loan, also referred to as administration or service fees
- Monthly Repayment: how much the borrower is required to repay on a home loan on an established schedule, usually monthly, fortnightly, or weekly
- Application Fee: a one-time payment when beginning a home loan, also referred to as establishment, set-up, or up-front fees
Clients can also easily compare home loan products by using an online Loan Comparison calculator.