A home loan comparison rate is a rate that includes the interest rate plus other costs associated with a home loan, expressed as a percentage. The comparison rate is designed to give you a better idea of the true cost of a home loan so that you can make an informed decision about which loan is right for you.
In this blog post, we’ll break down the process of getting a home loan comparison rate in Australia so that you know exactly what to expect.
You’ll need a qualified and experienced mortgage broker
First things first: in order to get a home loan comparison rate, you’ll need to contact a mortgage broker. Mortgage brokers are professionals who work with banks and lenders to find the best possible deal on a home loan for their clients. Once you’ve found a mortgage broker that you’re comfortable working with, they’ll help you compare different loans from different lenders to find the one that’s right for your needs and budget.
When comparing loans, your mortgage broker will take into account the interest rate, any fees or charges associated with the loan, and the term of the loan. The term is the amount of time that you have to pay back the loan, and it can range from 1-30 years.
Here’s a quick example
Let’s say you’re looking at two different home loans. Both have an interest rate of 5%, but Loan A has annual fees of $400 and Loan B has annual fees of $700. The comparison rates for these loans would be 5.32% (Loan A) and 5.75% (Loan B). This means that Loan A would be cheaper overall than Loan B, even though they have the same interest rate.
Once your mortgage broker has taken all of these factors into account, they’ll calculate the home loan comparison rate for each loan and present them to you so that you can make an informed decision about which one is right for you.
Speak to a Perry Finance expert today
The home loan comparison process in Australia is designed to help borrowers find the best possible deal on their home loans. If you’re considering taking out a home loan, be sure to speak with one of our professional mortgage brokers today, so that we can help you compare different loans from different lenders and find the one that’s right for your needs and budget.
From residential and commercial loans to development finance and other funding solutions; our team has years of industry experience and we tailor our solutions to cater for your individual needs. Together, we’ll find you the best outcome possible.