5 Things to consider before choosing a home loan comparison service

Article summary

• A home loan comparison service helps secure the best deal on your home loan, by applying to multiple banks on your behalf and comparing rates.
• Some home loan comparison services are more professional, with a higher success rate than others.
• Ultimately, you’ll want a home loan comparison service that has a good relationship with the banks, is committed to securing you the best possible deal on your home loan, and makes the overall home-buying process more user-friendly.

A home loan comparison service can be of significant value to those looking to invest in property, or purchase their dream home, using a home loan. Their objective is to secure you the best home loan deal, which they achieve by applying to multiple banks on your behalf, so they can determine which ones offer the best rates, terms and loan amount.

However, some home loan comparison services provide a more professional service than others, and offer a higher rate of success. If you’re interested in employing a particular home loan comparison service, here are some things you should take into account.

1. Do they have a good relationship with the banks?

Since the home loan comparison service will be dealing with the banks on your behalf, it helps to know what kind of relationship they have. Most providers will have a relationship with all the leading banks, but those with a reputation for professional service will naturally have a better rapport, which is an advantage when they negotiate with banks on your behalf.

2. Will they champion your cause?

You need a home loan comparison service that is really going to fight your corner. Negotiating with the banks can be tricky, and some may be willing to offer better rates, terms or loan amount if they can be persuaded that you’re a worthy investment.

It helps to have people with professional negotiating skills handling such matters on your behalf. Not only does it have a proven track record of securing better rates, it often succeeds at securing home loans for those who have had previous applications rejected.

Will they guide you through the home-buying process?

The home-buying process can be a complicated one, especially for first-time buyers. It helps to have a service that is willing to go the extra mile and guide you through every step of the process, whether it be gathering the relevant documents, applying for a home loan or advising on bond and transfer costs.

Some bond originators are professional about this, maintaining regular contact with their clients and keeping them informed of any developments; while others may be lax in this regard. At a certain point, banks and attorneys do take over; but until then, it helps to have someone guide you through the various steps.

Do they provide additional services?

What does the home loan comparison service offer in terms of insurance packages, such as buildings insurance, and household contents insurance? Many homeowners like to get buildings insurance and home insurance at the same time.

Some home loan providers also have a higher success rate at securing home loan deals that seem too good to be true, such as the 100% home loan, which requires no deposit from the home buyer.

Do they make the home buying process easier?

Ultimately, you want to know if the particular home loan comparison service makes the home buying process easier overall. For example, ooba home loans offer a range of home loan calculators that you can use to calculate your monthly repayments; your registration and transfer costs; how much you need to save for a deposit; and other such useful information.

They also provide a prequalification service that helps you determine what you can afford, which is useful information to have before commencing your house hunt. You can either contact ooba home loans directly to get prequalified, or use their free, online prequalification service, the Bond Indicator.

Then, when you’re ready, you can apply for a home loan with ooba home loans, which has a good relationship with all the leading banks, and an 83% success rate for securing home loan approval.