Real Interest rate

All,

I am about to do some shopping around for a new home loan and just wanted to get an idea of what "real" interest rate people are paying ... I gather most companies give special discounts that are not mentioned on their websites.

For example, my current home loan (Wizard Smart Choice) has an advertised rate of 9.39% (9.44% comparison rate) variable, however I am currently paying 8.84%.

Any input would be appreciated!

JR

"Professional" packages are pretty common these days - up to 0.7% off the standard variable rate.

Check out Home Loans or Product Snapshots for a comparison.

All depends on how much you want to borrow and what facilities you require.

I am very pleased with the Westpac Professional package. It lets me revalue my IP's and tap into extra equity at no cost.

Which can go up to 0.9% if you have several sizeable loans with them

Cheers

MARFIN LAIKI's option plus package with an offset is very tempting at 8.56%

https://www.laiki.com/web/w3au.nsf/W...2573330023C634

Hi,

When you're looking for a home loan, don't just look at the headline rate. Check out what other fees you may have to pay such as app fee, valuation fee, settlement fee, documentation fees.

Professional packages are a good way of avoiding fees because you only pay one cover all fee and you'll get a reduction on the interest rate. But you will have to pay a yearly fee that range from about $250 and up to $550.

If you just want a set and forget type of loan, i recommend no frill loan. These loans are usually the lowest interest rate but you will have to pay a small fee for features like offset and redraws. Online home loans are also really cheap but forget about the service.

the lowest interest rate on may not be the best one for you, so do your research and find the most suitable rather than the cheapest.

Hope that help.