Home Loan Articles

Where do you get your information about home loans? From the media? From a friend?

The reality is that most Australians read and listen to advice from the media regarding their mortgage or would prefer to listen to a friend than to a trusted expert. Borrowing for a home is a complex process filled with many possible pitfalls, so it is critical that you seek the right advice from the right source.

Unfortunately your friends & family may not be well informed about finance, or they may give advice that worked well for them however will not work well for you. Mortgage brokers exist because everybody’s needs are different, if there was one best lender for everyone then there would be no need for our help! So in many instances when someone’s friend has recommended the same lender that they used then they are not taking into account the specific needs of that person.

The media on the other hand often gives advice backed up with scant evidence or with comments from an expert in the industry. Newspapers make money from selling advertising, not from giving excellent advice! Their goal is to grab your attention so that you read the article. For this reason articles about interest rates or house prices going up or down are very common. We often see two articles in the same newspaper on the same day, one saying rates are going up, the other suggesting they may go down!

We recommend instead that you only listen to a few select sources when researching your loan. In particular consider the following:

• Independent experts: RP Data & Residex are research / data management companies that work closely with the real estate industry. They are unbiased and are an excellent source of reliable information regarding the future of house prices.
• Industry commentators: Following one expert and their home loan articles is a great way to avoid being confused by conflicting information.
• Specific mortgage advice articles: On our Home Loan Experts website you can find more mortgage articles that will give you the right advice to help you overcome specific problems such as how to value a property or obtain a free copy of your credit file.
• Finance Forums: You can ask questions on our home loan forum or on another industry specific forum such as the Sommersoft or Propertyinvesting forums used by many Australians. A mortgage broker can then reply to your question with specific advice.

Always remember that ultimately there is no substitute to meeting with a finance professional, such as a mortgage broker, in person and completing a full needs analysis. This will get you on the right track to finding the most suitable loan for your situation.