compare home loan options with confidence

Start with the total cost, not just the headline rate

When you compare lenders, look beyond the advertised % and estimate the lifetime cost over your likely holding period. Factor in application fees, ongoing charges, valuation costs, and any cashback that might expire. A slightly higher rate with lower fees can win over five to seven years, especially if you plan to make extra repayments.

Key numbers and features to weigh

• Fixed vs variable: Fixed adds certainty; variable offers flexibility and faster payoff via extra repayments.
• Comparison rate: A rough apples-to-apples figure, but still model your own scenario.
• LVR and LMI: Borrowing over 80% may trigger insurance; a bigger deposit can slash total cost.
• Offset and redraw: Offsets reduce interest daily; redraw suits disciplined budgeters.
• Break and exit costs: Crucial if you might refinance or sell early.
• Serviceability buffers: Check how a 2–3% rise affects repayment comfort.

Before you decide, run two or three realistic repayment paths, include fees, and stress-test for rate rises. Then negotiate; lenders often match sharper offers when asked.