Finding the cheapest home loan isn’t as simple as looking at a home loan comparison chart and picking the lender who has the lowest rate. If that was the case, we’d all have our home loans with the same lender and the rest would go out of business. There are many variables in choosing the right loan and sometimes what appears to be the cheapest home loan, is not actually the case.
With property prices in Australia rapidly increasing, saving enough money for a good deposit on a home loan is becoming more and more difficult. Lenders in Australia prefer a deposit of 20% of the property value but if that figure is out of your league, there are other options. Lenders Mortgage Insurance allows you to have a smaller deposit and still get a home loan.
Today the Reserve bank of Australia cut the official cash rate to an all time record low of just 2%, this is the second cash rate cut in Australia this year.
There are a few cornerstones of residential lending criteria that are vital to you being approved for a loan.
Fixed, Variable or Split Rate Home Loans?
When purchasing property or refinancing, you need to make a decision on the type of loan that will best suit your needs. Do you want a fixed interest rate, variable interest rate or perhaps a split facility which is a mixture of both?