5 Things You Didn’t Know About Australian Home Loans

November 12, 2019
image of a checklist to outline the things you didn't know about australian home loans

After spending weeks in the car coming and going from open inspections, you’ve done it. You’ve finally found “The One”. The home of your dreams.

But, before you can joyously sign the papers, you need to find a suitable home loan. One that will give you the best interest rate for your circumstances, so you can really enjoy your new home without the worry of an over-priced mortgage. 

The quest to find the best home loan rates is an exciting yet stressful time in your life. Especially so if you’re new to the home loan hunt, or aren’t sure what you should be looking for.

Where do you start looking? How do you know you’re getting the best interest rate available?

At Joust, we understand that all these questions and more run through your head when you’re searching for a competitive home loan rate.

We want to help remove the stress and anxiety that can so often cloud this thrilling time in your life.

Here are 5 things you didn’t know about Australian home loans, and how you can find the best home loan rates available.

In Australia, approximately 52 percent of current home loans originate from a mortgage broker – and that figure is on the rise.

However, the reality is that you may not need a broker in order to find the best home loan rates.

The Internet is home to millions of pieces of information that will help you find the best home loan rate. But it might take much savvy searching to wade through all the interest rate offers of different banks.

1. You Don’t Have to Hire a Mortgage Broker

However, if you’re not prone to spending hours online, there is now a really effective and quicker alternative.  

By doing a Joust, you can sit back and watch as banks fight over your home loan, offering lower interest rates than you probably thought possible.

The lenders are bidding directly to your device – with no middleman needed.

It takes approximately 3 minutes to input your profile, then you can let the Joust begin!

Discover more about how Jousting works here.

2. You Can Move Your Home Loan and Your Bank

For some people, the concept of moving banks can seem daunting. It often scares them out of making the transition altogether.

But if you’re a loyal customer, you should be rewarded with the best rates.

If you’ve found that you’re not happy with your bank, or you’ve found a better rate elsewhere, it could be a straightforward decision for you to move banks.

Moving banks can be a relatively smooth process – and one that shouldn’t be a costly exercise.

If you decide to move your home loan to another bank, you can expect to pay anywhere between $300-$500 in associated costs. Considering the savings you could get with a better home loan rate, this could be a small price to pay.

In order to make the transition as seamless and stress-free for you as possible, we would recommend discussing the move with your new bank. They will be more than happy to talk you through what needs to be done and facilitate the process. This can be just your home loan or include your other banking products as well.

3. The Average Time to Get a Home Loan Approved and Settled is 6 Weeks

Once you have found the home loan rate that is right for you, there is still a while to go before you have access to those loan funds. 

Typically, it takes about 6 weeks for a home loan to be approved and settled by your lender. Current bank processes around credit approval and documentation are the main reasons for this time frame.

Home loan processes are not yet entirely digital and paperless, so they aren’t yet streamlined for optimal efficiency.

There are also compliance obligations and requirements that the lenders have to go through which can also take time.

To speed your approval process along, ensure that you attend to all of the documentation and regulatory requirements the bank needs as promptly as possible.

4. You Can Shorten Your Home Loan Shopping from Weeks to Days

Finding the right home loan rate for your needs usually involves walking around from bank to bank or meetings with brokers, gathering information and making appointments that can be weeks away.

However, you don’t want to wait for weeks before you can see the best offers available. You want them sooner rather than later – after all, your plans often rely on the financing.

There are a couple of ways you can substantially shorten this searching time. You could use the Internet, or you could do a Joust.

When doing a Joust, you can set a specific time frame for banks to bid on your home loan – anywhere from 1 to 3 days.

Once the Joust has begun, you can sit back and watch banks fight it out to win your business. Then, once the Joust has finished, you can select which bank bid will be the winner.

It’s a dynamic and efficient approach as opposed to you walking into a branch, meeting with the bank manager, taking all the pamphlets, going away, thinking about it, reading other advertisements, seeing what’s on websites and the TV.

This is hugely powerful for you as a consumer, as it puts you in the driver’s seat.

5. You Can Quickly and Easily Get an Idea of What Your Home Loan Rate Could Be

Whether you’re actively hunting or simply wondering, there’s never a bad time to discover what your home loan rate could look like.

Whether you’re keen to investigate refinancing of your home loan or you’re contracted to buy a new house, you can run a Joust at any time.

It’s an obligation-free process to Joust, and the results will give you a very good indication of what rates you can expect 

Joust is designed for convenience, so you can plan for your future in your own time.

At Joust, we are dedicated to helping you to find the best home loan rate available. Instead of using home loan calculators, meeting with banks or mortgage brokers, Joust can quickly and easily help you to find some of the best interest rates available.