Customers warned to avoid "gimmicks": RateCity
By Andrea Lavigne
|
17 Sep 2009
The prospect of new loan products entering the market has sparked RateCity to warn customers not to be "fooled by gimmicks".
"When interest rates are on the upswing like they are now, lenders will start to introduce home loans with savvy new features to attract customers.
"But Australians should always compare home loans to make sure they offer all of the features that you need," said RateCity CEO Damian Smith.
The financial comparison website flagged Bankwest's new Capped Rate Home loan as an example of such a product.
"We expect to see more creative marketing by lenders in the coming months as variable rates and the cash rate starts to rise," said Mr Smith.
"Australians need to be careful when comparing these loans to what is on offer by using the AAPR or comparison rate to see how much the loans will cost and avoid being fooled by gimmicks.
"Always read the fine print in the PDS carefully to make sure the loan is right for you," he said.
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