We run through some reasons why you should look outside your bank when searching for a home loan or weighing up your financing options.
1. Short term gain, long term pain
In this hypercompetitive market, banks and other lenders are offering a range of incentives to convince you to sign up. These include:
- Gift Vouchers
- Cash back offers
- Frequent Flyer Points
These sound very tempting, especially if you’re a first home buyer needing to furnish the place you’ve just purchased.
However, it’s dangerous when you place the value of a loan product on the short term benefits vs. the benefits over the loan duration. That initial cash rebate or other incentive can succker you into paying a higher rate than you need to.
2. Loyalty doesn’t pay
It’s fascinating that 40% of Australians remain with their childhood bank. Broadly speaking it means that nearly half the population doesn’t go outside their bank when looking for a home loan.
Whilst we like to think that loyalty is repaid, unfortunately when it comes to banks it’s not. Your bank won’t tell you if a competitor has a lower rate but a Dreamstreet Broker would.
Dreamstreet has access to a range of lenders and our team will work with you to select a home loan product that meets your requirements and at the best market market rate available.
3. The bittersweet introductory or ‘honeymoon rate’
With a vast number of products and rates being touted in the marketplace it’s common for lenders to offer an introductory rate to entice consumers to take up their product. The catch 22 is that the interest rate later reverts to a higher standard variable rate. This can be quite a shock to consumers and have a significant impact on the household cash flow.
Again, it’s the value of the loan product over the life of the loan not just an initial 6-24 month period. This is why, it’s good to work with a Dreamstreet Broker as we’ll will run you through the loan features and identify lenders that offer consistently good value.
4. It’s in our best interest to keep you in the loop
The only thing certain is change.
Both personal and financial markets (interest rates) change, so it’s important that your loan product changes too. Unlike banks, who are happy to have consumers set and forget, a Dreamstreet Broker will actively compare and recommend better suited products as they arise.
The truth of the matter is if a broker can find you a better product, it’s a better outcome for both you the borrower and us as your broker. It’s in our interests to make sure you remain a loyal and happy customer as opposed to you being left in the dark.
It makes sense to contact a Dreamstreet Broker to make sure you are getting the best home loan product and competitive rate available. Let us do the hard work for you.
Why not organise a time to meet with one of our friendly brokers, we pride ourselves one being able to meet your lending needs.
The Dreamstreet Team