How do I compare St.George home loans?

To make sure you find the right St.George loan you need a clear idea of what you're looking for in a mortgage. These simple questions can help: Do you really need a package loan? Some of St.George's lowest rates are home loan packages that let you combine a mortgage with other products like a credit card or transaction account. This usually brings you some benefits, but if you don't actually use those other products then paying the annual package fee probably isn't worth it. What do you need the loan for? If you're buying a home to live in you need an owner-occupier loan. Property investors need an investment loan rate . St.George has both. Fixed or variable? Do you want the flexibility of a variable rate loan that could rise or fall at any time? Or are you happy to lock in a fixed rate for a certain period so you can forget about rate changes at all? What features do you need? You need to decide whether you need features like a 100% offset account, the ability to make extra repayments and the option to split your rate.

What is home loan pre-approval?

Home loan pre-approval is an optional step in the application process that some lenders offer. Pre-approval means a lender has examined your savings, income and spending habits and has a rough idea of how much it could lend you. It's not the same as full loan approval and it's no guarantee that the lender will ultimately approve a full application. But it does allow borrowers to start looking for a home with more confidence and a clearer idea of their borrowing power . Pre-aproval is not something every lender offers, but many do.

Are there any risks going with a smaller lender?

Most Australian borrowers bank with one of the Big Four (Commbank, ANZ, Westpac and NAB). You might have some concerns about getting a loan from a smaller lender. But there's no reason to worry about going with a smaller lender. In Australia, banks and lenders are regulated by the Australian Prudential Regulation Authority (APRA) or the Australian Securities and Investments Commission (ASIC) and must comply with the National Consumer Credit Protection Act. St.George is owned by Westpac, which is an authorised deposit-taking institution (ADI). This means customers with money deposited in a St.George savings account benefit from the deposit guarantee scheme . This federal government scheme guarantees a customer's savings up to $250,000. Even if the bank itself collapses.

Should I go with a fixed or variable rate?

Deciding between a fixed or variable rate depends on what you want from the loan. A variable rate loan can change at any time, either up or down. A variable rate usually offers more flexibility in how fast you can repay the loan and the cost of refinancing. A fixed rate loan offers total certainty about your rate, for the fixed period. This means it won't rise, costing you more. But if your lender starts lowering rates you won't benefit either. Refinancing a fixed rate loan means breaking the loan, because you've agreed to a specific rate. This means you may have to pay a fixed rate break fee .

Do I need a mortgage broker?

Mortgage brokers are home loan professionals who can help you find a suitable loan. A broker typically charges you no fee, because they receive a commission from your lender. Brokers are great if you are short on time or find the whole process of researching and applying for a home loan confusing. But you can definitely do it yourself and find a good loan. You may even find a better deal. That's because brokers don't compare loans from every lender in the market. They have access to a panel of loans and often don't have smaller online lenders in their panel.