Its your turn to ask the questions! (After all, it is your home loan)
by Samantha and Nicole
Gone are the days where an interview for a home loan is a one sided affair where the lenders asks all the questions. You now have the right to ask a few questions of your own.
Here are a few things you should get answers to before deciding which home loan is right for you:
What fees are payable upfront?
Does the loan have any ongoing fees, if so what are they?
If I choose a fixed rate, what will the interest rate revert to when the fixed term is over? (Especially for honeymoon rates!)
Is there a penalty if I pay off the loan early?
Can I make additional repayments, if so how much? (Especially for fixed rates)
How will interest rate changes affect my loan repayments?
Will my interest drop if I am with the lender for a certain amount of time?
Can I split the loan? For example, 70% fixed, 30% variable.
What are the features of the loan?
If the loan has a redraw facility, what is the minimum redraw amount and how much does each redraw cost?
Is the loan portable? For example, if I sell my property and buy a new property can the loan be moved to the new property? (Especially in a fixed rate period)
If I refinance the loan, what are my breaking fees?
What repayment options do I have, weekly, fortnightly or monthly?
If I am a first time home buyer, does the lender arrange my first time home buyers grant?
With the increasing number of home loan options available today, it pays to do your homework. Dont assume that your bank has the best offer and be aware of the fine print.
If you have any home loan queries or just want a health check on your current home loan please contact the Samcol Finance Office on 5594 2727