I currently have a Home Loan with CBA. Interest Rate is increasing to 7%. I’m wondering if there is a trustworthy comparison site for a better loan option.
I doubt there could be because of the numbers of very personal variables and priorities. Comparison rates can be a furphy unless it your loan is ‘the standard loan’. One’s credit rating matters as often does the availability of offset accounts and other ‘perks’.
Some of them are enumerated in this dated but still applicable Choice article.
For comparison sites, the one I would go to is Canstar. It probably has the most loan details to compare.
But the headline interest rate doesn’t tell the whole story. There are a lot of features that could be very useful depending on one’s circumstances. For example when I was applying for a loan in the past, I was pleasantly surprised to find that as I was a member of a professional organization, the bank would give me a discounted percentage amount on the loan, for the life of the loan. One of the big four that had a relationship with the organization.
Also for me, an at-call redraw was important, since that allowed me to put pretty much all spare cash into extra repayments saving huge amounts of interest. But if suddenly I needed money, it was available immediately as a redraw.
Thanks for the advice. I’ll do my homework now and maybe I’ll change or at least bargain for a better deal. Just trying to keep my finger on the pulse
There is also the option of using a mortgage broker. They can save a lot of legwork, and potentially money, if they are a good, independent one with access to a range of loan packages from different lenders. Choice has provided information in the past on how to choose a broker and things to look out for: