In its first meeting for the year in February, the Reserve Bank of Australia cut the official cash rate to the historically low level of just 2.25 per cent.
Within a few days, we saw most lenders following suit, making for an extremely competitive marketplace.
So regardless if you are in the market for a mortgage, or have been in the same home loan for a while, you may find there is a sharply-priced product available that is perfectly suited to your needs.
When shopping for the right mortgage, it is important to ask yourself five key questions, including:
#1. Do I know the ins and outs when it comes to my mortgage?
With so many different products on the market, it is important to look into what options are available to you before signing on the dotted line.
#2. Have I compared lender interest rates?
It’s wise to understand what interest rates Australia’s lenders are offering at the moment. From there, you’ll need to compare and contrast them against what else is on the market. Remember, interest rates are an important factor.
#3. What if things don’t go to plan?
Things change. It’s a fact of life. As such, it is important for you to investigate whether or not the lender you’ve decided to go with offers a wide range of options should your personal or financial situation change (what if you need a loan top up? How about if you need access to funds for renovations and so on).
#4. Have I consulted a professional?
Being knowledgeable is only going to help you when it comes to consulting a professional. It’s wise to allow them to look into the best loan for you and complete the necessary paperwork on your behalf.
#5. Do I really understand all of the features of the mortgage?
A contract is a contract and as such, you need to understand what you’re agreeing to. You really need to be content with the mortgage features and any fees associated with the product.
HelpMeChoose.com.au is an online comparison service. Click here to see how one of our mortgage brokers can help you with your home loan needs.
*The information provided in this article is intended for an Australian audience. It should not be relied upon for the purposes of entering into any legal or financial commitments.