Are You Really Comparing Apples to Apples with Your Home Loan?
- Enric Tarraso-Letang
- 16 minutes ago
- 2 min read
When most people look for a mortgage, they focus only on the interest rate. On the surface, that makes sense, lower rate, better loan, right?
Not really!
Here’s the truth: two loans with the same interest rate can end up costing you tens of thousands of dollars more (or less) over the life of the loan. Why? Because of things like annual fees, monthly account charges, package costs, or penalties that aren’t obvious up front.
That’s why banks also must publish a comparison rate, which takes these hidden costs into account. But even then, it’s not the full picture. A mortgage broker knows how to dig deeper and show you the real cost difference between loans that “look the same.”
And it doesn’t stop there.
Even if your neighbour tells you they got a super-cheap loan at their bank, it doesn’t mean you can access that same offer. The type of loan you qualify for depends on your personal situation:
Are you self-employed or on PAYG?
How long have you been in your job?
Are you on maternity leave or have gaps in income?
What assets and liabilities do you have?
What’s your borrowing power and loan-to-value ratio?
These details, and many others, are very important. They decide which lenders you can access and what offers you can get. A broker looks at all of this, explains what’s possible for you, and even guides you on what needs to change if you want to qualify for something better.
In many countries, people go straight to their bank and stay there for life. But in Australia, you have a better option: a mortgage broker. A broker looks at your whole situation, compares across many banks, and makes sure you get the loan that’s truly right for you.
The best part? Brokers are paid by the banks, not by you. And a good broker looks after you for the life of the loan, making sure you can switch to a better option if your current bank becomes too expensive.
So don’t just rely on a headline interest rate, or your neighbour’s story. If you don’t know what a real “apple” looks like, you can’t compare apples to apples. That’s what a mortgage broker does: helps you see the true comparison, protects you for the life of the loan, and makes sure you always have someone on your side.
If you want help finding the home loan that’s right for you, don’t hesitate to get in touch. You can send me a message or check my contact details here: https://www.tarrasoletang.com.au/contact
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