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Too often borrowers miss out on a home loan that would be better suited to them because they did not do enough research and end up paying more than they need to.

Choosing the first home loan product you see could mean that you are missing out on a better deal. 

Too often borrowers miss out on a home loan that would be better suited to them because they did not do enough research and end up paying more than they need to. 

Did you know that by simply switching from a home loan with a 5.50% interest rate to 5.00%, you could be saving around $1,100 a year? (for a 30 year mortgage). This is a smart financial choice too many borrowers are not making.

This may be for a number of reasons. Some borrowers may be complacent and happy to stick with what they know then go out and research different lenders. Some borrowers may not know where to start and find all of the home loan terms and processes overwhelming. However, there are a number of free tools and resources available to suit every type of borrower, whether you are extremely savvy and knowledgeable about the mortgage market or you have no idea where to start. All of these resources are at your disposal, you just need to take the first step. 

Borrowers need to consider expert guidance and match that with sound products. A significant amount of money can be saved on home loans if you take the time to compare different products. This is where comparison sites can help.

Comparison websites, such as ratecity.com.au and canstar.com.au, compare a number of different home loans from a range of lenders. This is a simple way of looking at the different products and their interest rates in the one place. 

So how can you get the most out of comparison sites?

• Look for home loans that will suit your needs. Remember, your needs will be different whether you are a first home buyer, investor or refinancing and there are specific loans to suit those needs.

• Be specific when comparing fees, interest rates and flexibility. Make sure you’re comparing the same type of loans from different lenders.

• Look beyond the interest rates. Remember that this is only one of the features. Make sure you look at the entire loan to ensure it will be right for you.

• Follow up on the suitable lenders. Go to their websites and ask them directly about features important to you. If a lender wants you as their customer, they will take the time to answer your questions.

So whether you need help getting started or just need a confirmation that you are getting the best deal, comparison websites can be helpful.