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How do I know I’m getting a good deal from my lender?

With so many products offered by different lenders, it can be quite perplexing trying to figure out whether or not you have scored yourself a good deal on your home loan.

While doing your research and comparing what’s out there in the market is one of the most obvious ways to find out whether you’re sitting on a good deal, it can be a very time-consuming practice and overwhelming experience for those without specialist knowledge of the finance sector.

It’s good to shop around, and yes you can use comparison websites, but because lenders always like to call same products with different names, it can get challenging to find out whether you are comparing apples with apples. Brokers know each product names and pricing, so it is worthwhile working with one as not only will it save you time but you will also get a well-rounded understanding of the advantages of each product.

That understanding of each product pros and cons is also essential because the best deal isn’t necessarily just the one with the lowest interest rate. It ultimately comes down to find a loan that suits your plans, whether those plans are to pay the mortgage off as quickly as possible, to fund renovations, start investing property down the track, or to pay the lowest total interest and fees over the life of a loan, and to find a lender that will provide that loan at the level of finance required.

Imagine you’re a first home buyer and you want to buy your dream home. Now different lenders will lend you a different amount based upon the same criteria, so that could mean the lender will the lowest rate may give you $200,000 less than the one with a slightly higher interest rate. If you really want that property, you are going to have to go with the one with the higher interest rate, which may only cost you extra few thousand dollars difference a year in the interest repayments.

Please speak to Kevin Poh on 0415820016. He has specialist knowledge of products from multiple lenders. He will be able to help you with getting a good deal.

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