Australian Property News
Have you got the best home loan?
Posted on Thursday, June 25 2009 at 8:04 AM
Borrowers should ask themselves six questions to determine whether their home loan arrangements are the best deal for them, according to MyRate.com.au.
"There's a tendency for consumers to get more complacent about their home loan at a time like this when rates are low," Sherman says.
"However, there's still no reason to be overpaying on your home loan."
Sherman suggests borrowers ask themselves the following questions:
- Are there home loans with a lower interest rate than my current rate?
- Are there more flexible home loans allowing unlimited additional repayments and redraws with no fees?
- Are there home loans with fewer fees?
- Am I coping with repayments and do I want to consider reducing them by extending the loan term or reducing my interest rate?
- Can I manage my loan online or by phone and access features like BPay and direct debit/salary crediting?
- Am I happy with my finance institution’s customer service?
Sherman says borrowers should check their home loans once a year when they start working on their tax.
"Think of it as an annual health check," he suggests.
"We spend hours checking mobile phone plans, best travel prices et cetera, but the biggest savings consumers can achieve are most likely associated with their home loan."
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