Australians should 'compare home loans online'

Australians looking to find a more competitive mortgage should use the internet to compare home loans, it has been suggested.

Spokeswoman for Mortgage Choice Kristy Sheppard explained the best way to find a competitive deal is to draw up a budget and then "go online and play with home-loan calculators".

The tools will enable people to "formulate a decent idea of how much [they] should and can borrow", she stated, adding this information will help mortgage seekers be more prepared when they approach a lender to ask for a deal.

Ms Sheppard added that when drawing up a budget, it is important homeowners take all their incomings and outgoings into consideration so they can "truly understand [their] cash-flow situation" and identify where it is possible to make savings.

Last month, those seeking to switch to a more competitive home loan were given a boost by news that exit fees will be banned from mortgages from July 1st this year.

Have a question about home loans? Ask the money gurus at Mozo Answers.