Prominent Adelaide mortgage broker and Executive Chairman of Bernie Lewis Group, Mark Lewis has warned home buyers and existing mortgage holders to search extensively for the right home loan for their circumstances.The interest rate on the loan is clearly a major consideration in choosing the right loan. However, some recent data release by the Australian Prudential Regulation Authority (APRA) suggesting that two of the four major banks had significantly increased their share of the home loan market in the 12 months to April, despite having higher headline interest rates than other Lenders suggests that home buyers and mortgage holders are not doing enough research themselves or not using the services of a professional mortgage adviser to help them get the right loan for their circumstances.
People need to be aware that the higher the interest rate on the loan, the more they will pay, both in each monthly repayment and in the total interest paid over the life of the loan. So it makes sense that getting a loan with a low interest rate is an important factor.
Other factors to consider when choosing a loan include fees and charges, additional features, flexibility, portability as well as the currently very topical issue of exit charges and penalties. Clearly there are a lot of things to consider, so engaging the services of a professional mortgage adviser who will compare a wide range of lenders as well as manage the application, approval and settlement process on your behalf makes a lot of sense. Of course you could do it all yourself, but who has time for the many hours that would be required to gather all the information from a range of lenders to make an informed decision these days.
Filed under: Finance Tips, Home Loans & Mortgages, APRA, Bernie Lewis, home loan, interest rates, Mark Lewis, mortgage adviser, mortgage broker
