As home loans soar, why aren’t you switching to a better deal?
A home loan is one of the largest investments you could make – and yet Australians spend more time researching their phone plans.
Australians are jumping the gun when choosing their home loans, preferring to spend more time comparing mobile phone plans or researching electronic products. With home loans being a much bigger expense where you often lock in a rate for years at a time, it's very important to do thorough research before making a decision.
New research from the Money Mindset report, published by Pepper Money, has revealed that Australians are spending more time researching a phone plan (71%), internet provider (70%) and car insurance (68%) than researching a home loan (60%).
Additionally, the research found that despite almost all Australians (98%) saying that taking the time to understand their options helped them more confidently make decisions, more than half (53%) have previously jumped at the first loan option they were offered without looking any further.
These findings are concerning as the RBA has just increased the cash rate for the eighth month in a row, meaning home loan borrowers can expect their monthly repayments to increase.
Now more than ever is an important time to check if your lender has increased its rate and switch if you find a better deal on the market.
Why should I compare home loan rates?
Reduce interest costs
With the cash rate at the highest it has been since April 2013, it's a great time to shop around and find a better deal.
Access different features
Different home loans have different features. For example, not all home loans allow you to link an offset account to your mortgage or make extra repayments without penalty.
Lock in a lower rate
If you're worried about interest rates continuing to rise, you might want to consider switching to a lower fixed rate home loan. This will protect you from any rising rates during your fixed term.
Consolidate your debt
If you're paying high interest rates on other debts such as car loans and credit cards, it might be worth consolidating all your debt onto your mortgage.
The home loan market has a wide range of lenders and options so it can feel overwhelming to decide which one to choose. However, taking the time to find the best home loan for you can have a much bigger impact on your finances than other household bills such as phone plans or internet providers. If you haven't compared what else is on the market, now is the perfect time to do so.
We know it's hard, but we've made it easy – compare home loans here!