What to look for in a home loan lender

There are lots of choices that you’ll need to make when securing a home loan. From the suitable type of loan and interest rate through to extra options such as a redraw facility, making the right decisions early on can play a huge part in ensuring your repayments process runs smoothly and stress-free. But what about the choice of lender?

In Australia, there are dozens of different banks and lenders that loan money to borrowers for property purchases, and it can be a bit daunting working out which option is right for you. A mortgage broker can make the process much simpler, but it’s still worth knowing as much as possible about the various options out there.

What makes a good mortgage lender? 

It goes without saying that preferred mortgage lenders have a good track record and great customer service. Of course, the biggest consideration for many when choosing a lender is whether or not their loan will be approved, but even so, there’s still plenty of choices. From the traditional big banks to alternatives such as mutuals, credit unions and building societies, home buyers have all sorts of options available, and that’s without including the plethora of online-only lenders that have sprung up in recent years.

Regardless of which type of lender you go with, there are a few key areas to consider when looking through the options. These include:

  • Lender credit policy: Each lender will have its own policy for what constitutes good credit. If you don’t meet these criteria, you’ll need to look at other options.
  • Interest rate: Although this is only applicable at the time of approval, it gives you a good idea of which lender is the cheapest.
  • Loan fees and features: Finally, there are other features added by certain lenders such as an offset account that can make a loan more flexible, along with any other fees that must be paid as part of the process.

Wading through this information to find the best lender for you can be tough, which is where a mortgage broker can assist.

Deciding which mortgage provider to go with can be a confusing process. Deciding which mortgage provider to go with can be a confusing process.

Finding a lender with a mortgage broker

One of the biggest benefits of securing a loan through a mortgage broker is that they’ll be able to access loans from a wide variety of different lenders. This makes it much easier to compare the options and find the perfect fit. Here at Smartline, we pride ourselves on working with the great providers, who we select based on the quality of their loans and customer service.

Check out our panel of lenders here, and get in touch with your Smartline Adviser today to find out more about your ideal home loan.

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