When it comes to home loans, one size most definitely doesn’t fit all.
Like everything in modern life, the way to get the best deal is to ‘go bespoke’ and get a custom product. That’s according to Ross Miller, general manager of leading lender, St.George Bank.
“Everyone’s needs and goals are completely different when it comes to buying a home, so it’s never a ‘one-size-fits-all’,” Ross says.
“It’s really important buyers take the time to do their research, and talk to an expert so they can personalise their home loan so it’s right for them,” he explains.
Buyers should carefully consider what the home loan needs to do over its life, he says, and make sure the product chosen fits.
“It’s really important to understand your needs and goals to help guide your decisions. This can include planning for the future; like whether you’ll need to renovate to make room for your growing family, or downsize once the kids have flown the coop,” he says.
Buyers should consider what their home loan needs to do over the term of its life, not just at the time of purchase.
How will you structure the loan?
The type of loan matters, Ross says.
“There are two main loan types to consider; the first is paying both the principal and interest, or a second option is an interest-only loan,” Ross says.
“It’s also important to think about how the interest rate will be structured; a fixed-interest rate for example will help you plan with consistent monthly repayments, while a variable rate will change in depending on what’s happening in the market.”
To help navigate your options, St.George’s new online application platform will now give St.George applicants a personalised home loan snapshot – which includes the best interest rate that’s personalised to each buyer’s circumstances.
Custom features
There are ‘no-frills’ products, or ‘feature-packaged home loans’ that can include features like an offset account or the ability to redraw extra money paid into the loan, he adds.
“Free online tools like St.George’s new online home loan application platform, can help you to better understand your options by providing detailed information about your borrowing power based on different buying scenarios.
“Digitising the experience also means we’re able to simplify the process and put power back in the buyers’ hands – and they could even receive indicative approval in as little as 15 minutes.
“The best thing for buyers to do is get educated, because the more you know about what’s involved, the better equipped you’ll be to make decisions that are right for you,” Ross says.
The best thing for buyers to do is get educated. Picture: Getty
It’s also possible to alter a loan over time, he explains.
“Depending on what you’ve agreed with your lender, you could make changes to your home loan to make sure it still suit your needs – particularly if your financial situation has changed,” Ross says.
“This could even mean saving a little extra each year. The property market is always changing, so it’s a good idea to check in regularly on your home loan and see if it’s still the best fit for you.”
For more information, or to apply online, head to the St.George website.
