Tips for finding the best home loans

Whether interest rates are rising or falling, you should always be keeping an eye out for the lowest interest rate. If you are about to get your first home loan or want to refinance your existing mortgage at a lower rate then finding the best home loan can be easy and simple if done right. If it’s not done right finding the best home loan can be daunting and confusing. We can help guide you through the home loan maze of Australia with a few short tips.rnHome loan comparisonrnThere are two types of comparison sites in Australia:rn1. Self-compare sites – these have plenty of great comparison tools on different sites to help quickly filter and compare home loans in Australia according to the features you want, such as extra repayments, free redraw and offset accounts. Using these comparison sites you can shortlist the best home loans for your needs, you can compare your chosen loans side-by-side to find the cheapest home loan and apply online at the lender's website. With these loan comparison sites you do all comparison yourself and must do your own due diligence to ensure you have compared properly.rn2. Compare for you sites – these are sites that get the brokers to do the work for you. Often referred to as “free interest rate check” sites. Instead of shopping around, handing out your details to a range of lenders and comparing vast amounts of confusing information you can quickly post a few details about what you have or what you are looking for. The brokers do the comparison for you and come back with the best home loan rate that suits your needs. You then choose which loan offer you like best and start the application process. Finding the best home loans couldn’t be easier, simpler and better.rnFinding the right home loanrnBefore you start work out what you want and what you need. You can then compare home loans, it helps to work out whether you need a home loan with all the bells and whistles, or are simply after a low rate home loan with no frills.rnNot all cheap home loans offer completely flexible and free features such as the ability to make extra repayments with no penalties and unlimited free redraw. To make sure you get the best loan for your needs, always check features as well as rates and fees when you compare home loans.rnAlways consider the best rate type for your loan. There are many options such as basic variable rates, discounted home loan rates, standard variable rates, fixed rate and split rates. Always check the costs to break any fixed term rates when you compare home loans to ensure you aren’t locking yourself into something that won’t suit. A split loan is a way to get the best of both worlds by fixing the rate on part of your mortgage, while keeping the rest at a variable rate and enjoying the flexibility that comes with it. If rates go up or down you benefit either way.rnEnsure you take full advantage of the comparison sites and the tools they offer such as home loan calculators. Having such a vast array of home loan rates ensure there is always an option to meet your needs. The best option will depend on you and the current Australian home loan market. Compare the different loan options to find the best home loan with the lowest rate.