What Is a Mortgage Comparison Rate?
Taking on a mortgage can feel a little intimidating, especially if you’re not experienced. There’s a lot of paperwork to be prepared and signed off, a lot of money and time on the line, and what can feel like thousands of different opinions on how you should be handling it all.
But your mortgage doesn’t have to feel so overwhelming. Armed with the right tools and information, you can be confident in your decision-making and completely in control of what you want and how to go about getting it.
The best thing to do is speak to a mortgage broker, but you can’t be expected to have an expert on the line with you through each and every consideration and decision. One tool designed to help you with your research is the mortgage comparison rate.
Mortgage comparison rates help homeowners identify the true and total costs of home loans. As of recently, banks and lenders are required by law to display them.
What are mortgage comparison rates made up of?
Comparison rates are made up of a range of variables, including loan amount and term, payment frequency, fees, charges and interest rates. They simplify homeowner comparison between loan packages by simply putting forward the total dollar amount you stand to pay.
Because home loans can be flexible, a comparison rate can’t take every possible situation into account. However, they are a useful high-level indicator that can have profound positive effects on your decision making.
How to use mortgage comparison rates
Keep in mind, it’s possible that a comparison rate may not include the amount and term of a particular loan. The best way to utilise comparison rates is to look at the rates for the amounts and terms that most closely match your own loan.
Comparison rates simplify the homeowner experience, but homeowners may still find themselves with questions. If you have any questions about comparison rates or home loans, you should contact a mortgage broker for clear and specific advice from professionals.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.