1. When loyalty doesn’t pay
There’s a good chance you’re one of 40% of all Australians who still bank with their childhood bank. It may be less out of loyalty and more out of convenience, but nearly half of us use the same bank for all financial needs.
The thing is, when it comes to home loans, banks compete for your business.
Staying with your childhood lender may mean you miss out the substantial savings a more competitive home loan with a different lender could give you.
Your bank won’t tell you if there are better rates available, but a broker will.
2. Bittersweet sweeteners
When the market is competitive, many lenders offer deals on your home loan to get try and get you to choose them.
These sweeteners include things like low introductory rates, cash back offers, and gift vouchers. These sweeteners are designed to be extremely tempting.
That said, these are short term perks that can blind you to the real value of your home loan. A few dollars rebate at the beginning of your loan is nothing if you’re paying a higher rate over the life of the loan.
3. When the honeymoon ends
It’s common to be wooed by a lender with short term sweeteners, which lenders compensate for with higher rates later.
We often find that customers who take up the ‘honeymoon rate’ short term discount are disappointed to realize that it later reverts to a higher rate on a standard variable loan.
Your broker can help you find a better strategy, which can be to find a loan that offers good value over the life of the loan, long after the honeymoon is over.
4. Your broker will always keep you in the loop
Mortgage broker’s clients are more informed at all parts of the process compared to people who go to a lender directly.
People who work with a broker tend to appreciate that their brokers invest the time necessary to understand their needs and help them make the best decisions for their situation.
Call one of our professional brokers on 1 800 3 PEASY or visit https://peasy.com.au/ to be sure you are getting the home loan that’s right for you.