Loans.com.au dropped its interest rates this week for Australian home buyers who are purchasing their owner occupied home.
Managing Director Marie Mortimer said that the amount of home loan choices now available in the market for owner-occupiers made it even more important for them to consider all their options before taking out a mortgage.
“Amid all the stress and excitement of negotiating for a home, it is easy to neglect shopping around for the best interest rate and just go with whatever your current bank offers you,” Ms Mortimer said.
“This is a big mistake because interest rates vary widely so choosing the wrong home loan can cost tens of thousands of dollars in interest over the life of the loan and be just as bad as overpaying for a home in the first place.”
Loans.com.au has launched a Home Buyer Special which offers people purchasing a home to live in a discount compared to other categories of borrower.
For a limited time, Loans.com.au’s streamlined Essentials loans starts at just 3.54% (3.56% comparison rate), for purchasing owner occupiers.
Ms Mortimer said buyers should also watch out for big differences between the headline interest rate on a loan and the much more useful comparison rate which rolls all fees and charges into one annual figure.
The difference between the headline rate of a home loan and the comparison rate can be as much as 1.00%, compared to just 0.02% for loans.com.au.