While investors can benefit from some of the lowest interest rates seen in years, there’s a danger that many buyers may overestimate the importance of interest rates in the longer term outlook of their home loan. 

Smartline Personal Mortgage Advisers said that new and existing mortgage holders should look beyond the headline interest rate and take a ‘big picture’ view of their home loan. 

“The interest rate being charged is certainly a key consideration, but there is much more to a home loan than just the interest rate,” said the company’s executive director Joe Sirianni. 

Sirianni added that overall satisfaction with a loan product was far more important. “Keep in mind that you don’t have a loan for one day – most Australians change their home loan every four to five years – and you have to be able to live with your bank, the services they provide and the features of the loan over time.” 

Another home loan consideration is the way you like to manage your money: how you like to do your banking, where your salary gets paid, how you like to pay for purchases. 

“The idea is to choose a home loan that helps you achieve your goals now but also has the scope and flexibility to meet your future needs so you don’t have to look at changing home loans again in a year or two,” Sirianni said. 

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