Borrowers are being urged to pay attention to fees and features when choosing home loans, rather than focusing on interest rate settings.
Following widespread public outcry after banks raised interest rates outside the Reserve Bank this month, Mortgage Choice has called on borrowers to take their focus off rates alone. Company spokesperson Belinda Williamson argued that focusing on interest rates ignored the "bigger picture".
"A loan’s features, such as an offset account or redraw facility, associated fees, and whether you choose a fixed, variable or split interest rate will have an effect on how much you will pay in overall interest and how long it could take to repay the loan," she said.
Williamson urged borrowers to consider options such as offset accounts and redraw facilities rather than solely choosing products on rate. She also called on borrowers to look outside major bank products.
"There are hundreds of loan products and many different types of lenders, such as big banks, small banks, credit unions and building societies," Williamson said.