We lift the lid on five home loan secrets.
1. Loyalty doesn’t always pay
Remember the bank you chose when you were a little kid? Well, it turns out 40% of Australians still remain with their childhood bank. That same sense of loyalty means almost one in two of us stay with the same bank for all our financial needs.
But loyalty doesn’t always pay.
Sticking with the same bank could mean missing out on the savings of a more competitive home loan with a different lender.
The thing is, your bank won’t tell you if a competitor has a lower rate. But your Aussie Broker will.
Every day Aussie Brokers sit with loyal long term bank customers, who may be paying interest rates higher than they should be.
The key take-out? With access to over 20 leading lenders*, your Aussie Broker can help you select a great home loan deal that’s well-suited to your needs – and your budget.
2. Sweeteners can leave a bitter taste
In a competitive market, lenders are offering a range of special home loan deals to entice you on board.
The sweeteners can range from low introductory rates through to gift vouchers, cash back offers and even frequent flyer points. And they can sound very tempting.
However, for true value on your home loan, it pays to look past short term perks. After all, something like a handful of dollars rebated at the start of your loan will soon become a thing of the past – and it’s not much of a perk if you’re paying a higher rate than you need to.
3. The honeymoon will end… possibly badly
It’s common for lenders to compensate for an upfront sweetener by charging a higher rate at some stage of the deal.
In fact, Aussie Brokers often meet customers who are on a ‘honeymoon rate’ (a short term discount on a variable rate), which later reverts to a higher standard variable loan. And that in-built rate hike can come as quite a shock to your finances when it rolls around.
A better strategy can be to look for a loan that offers consistently good value. Your Aussie Broker can help you find a home loan where you’ll feel the love long after the honeymoon is done and dusted.
4. Your broker keeps you in the loop – at all times
A study by Deloitte found mortgage broker customers had a higher rate of being informed at all times compared to those who go directly to a lender.
The same report found broker customers really appreciate the way their brokers are prepared to invest “significant time in understanding their needs and supporting them to make the right decision”.
It all adds up to smart reasons to partner with Aussie – and be sure you are getting the home loan that’s right for you.
You may also be interested in Brokers v comparison sites. Why it’s worth chatting to a broker, Q&A: How do brokers find better deals than I can find myself? and 6 ways a mortgage broker makes getting a home loan easy.
*Not all lenders are available through all brokers
This blog was originally published in March 2018 and has been updated.