“All home owners should be paying less interest on their home loans”.

That is very obvious, isn’t it?

When you are looking to buy a property and get a home loan, what is the first thing that pops in your mind? I bet it is something along the lines of “I want the lowest interest rate in the market and I don’t care who gives it to me. I will go the person, bank or whoever gives it to me”.

Now, wait a minute – is interest rate the only important factor when you are looking to buy a house?

Let me ask you a few other questions.

1. When you are looking to use the services of a specialist doctor, do you go to the cheapest or the best in the world?

2. When you are wanting to celebrate your anniversary or birthday, do you go to the cheapest restaurant or the one that provides you with quality food and service?

3. When you buy grocery, do you spend less money to buy slightly old food or pay the price to buy good quality food to feed your family?

Of course, there are always arguments that some places have specials and so on.

How is it that when it comes to the biggest debt of your life – your home loan – all you can think about is interest rate? I’m sure most of you are internet savvy and have spent hours looking for all that you could learn about home loans.

I am not sure if the banks want you to understand about other important features of home loans. One example is their other fees – like application fees, valuation fees, settlement fees, exit fees, mortgage insurance amongst other factors like understanding your goals, service, timeframes and what is not working with that particular bank right now! No, they never speak about any of that. Because if they do, then consumers (You) will go away to someone else who offers a comparably suitable product for you.

Unlike them, it is our job as mortgage brokers (at least the good ones) to do our due diligence by asking the right questions to find you the right home loan. Personally, for me, it is all about understanding your goals – what you want in the next few years – how do you want your lifestyle to be – before I can even talk about lenders, let alone interest rates.

Don’t get wrong here! I don’t want you to pay high interest rate and low fees because it beats the purpose. All I am trying to say is that service – talking to one person over the time of the home loan, someone who will consider your goals and needs and wants, year after year is as important as finding the right home loan. Walking into a branch or using online homeloan providers may not be the solution unless you know what you want!

I’d love to hear your thoughts contradicting me!