Step 2 - Home Finance Choosing a lender

When choosing a lender, search a range of lenders and loan types and try to develop a feel for what the right type of loan would be for you.

If in doubt, consult a financial adviser who can help you work through the benefits of loan types, costs and fees to help you find the right loan fit.

Another option is a loan broker. However, be aware that brokers are paid fees from the lenders to write loans – even so if the lender is the right option for you, sometimes brokers can obtain better interest deals and they act as a middle man which can make it easier to submit your application as they do it all for you. Brokers can be a good option for busy people who may not be able to attend bank appointments due to work commitments.

Things to look for when considering a lender:

• Interest rate

• Establishment fees

• Loan payout fees

• Other costs such as valuation fees, mortgage insurance

• Ease of approval

• Are repayments flexible?

• Can you switch between loan products later?

• Is the lender helpful and are all your questions answered?

The last of these is as important as the fees and charges as you need to find a lender who is contactable and who has people readily available to answer any queries you may have (that is – someone who is contactable in person and not just via a website).

When you have finished this section on choosing a lender time to apply for a loan