Aussies 'should compare home loans' to avoid mortgage fatigue

Monday 04 January 2010

Article by Mozo

Mortgage holders should compare home loans rather than settling for their existing arrangement, an expert has said.

Chris Acret, managing director at Smartline Personal Mortgage Advisers, told News Limited that borrowers often view a home loan as a 30-year proposition and are reluctant to shop around for better deals after making their initial choice.

He said that as the marketplace continues to develop in light of rising interest rates and changing personal circumstances, Aussies should be seeking out better home loan offers.

"It may be that you’ve had a pay increase since taking out your home loan, which means you could afford to pay an extra $20 a week, which could reduce your loan term by about four years and save about $54,000 in interest on a $250,000, 30-year loan at a variable rate of 6.61 per cent," Mr Acret told the newspaper.

Angelo Benedetti, director at Oracle Lending Solutions, also told the news provider that many people neglect to compare home loans because they simply do not want to think about it. He said that the cost of interest and changing lifestyle choices should encourage more people to look for alternatives.

Last week, property analysts RP Data said that the value of home loans rose to correspond with increasing house prices in November 2009, ABC reported.

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