From 1st January 2012, consumers will be able to ask lenders to provide them with a Home Loan Key Facts Sheet.
MyRate reviews this new requirement from the Australian Government which aims at facilitating home loan comparison between providers.
There are so many lenders and loan options on offer with different interest rates, comparison rates, product features and fees therefore it can be very confusing for consumers particularly for first home buyers.
It is important to work out what will work for your circumstances, what features are essential and which ones are unnecessary.
The Key Fact Sheet will be presented in a simple & universal format and will assess your individual situation according to loan amount, loan term and type of interest chosen.
The most interesting feature will be what is called a “Personalised Comparison rate” per annum which will integrate costs like establishment and ongoing fees into the interest rate enabling consumers to understand the total cost of the loan.
The Key Fact Sheet will also give you an estimate of your monthly repayments as well as the amount you will have to reimburse for every $1 borrowed.
For more information on choosing the right home loan, you might want to visit the ASIC consumer website at www.moneysmart.gov.au
The MyRate Team / CC.