Butler Finance
  • Home
  • Residential Loans
  • Business and Commercial Finance
  • Car and Equipment Loans
  • Contact Us
  • News

Discount rates: deal or no deal?

8/3/2016

0 Comments

 
Don’t jump at special home loan interest rate deals until you have read the fine print.

Introductory offers, no rate products and percentage discounts are a popular way for lenders to generate interest in their products, but they don’t necessarily lead to a cheaper home loan overall. You may find that higher fees accompany the lower interest rate or that you are paying for loan features you don’t need.

Borrowers often come to mortgage brokers to help sort out the confusing discounts on the market. It can be difficult for borrowers to compare loans if it isn’t easy to calculate what the actual interest rate is over the full term of the loan.

We tell customers that when choosing a loan, they should look at the whole package, not just one element. It’s important to consider your finance needs, what features you want from a home loan and how much it will cost in fees. Depending on whether you're refinancing, renovating, investing, or buying a home for the first time, your loan needs to accommodate your individual circumstance.
​

When a low interest rate offer catches your eye, always ask for the key details, such as how long the special offer lasts for and what the rate reverts to after that. Check out the comparison rate as this is the actual rate you’ll be paying and it is a useful tool to help compare the cost of different loans. Make sure that you read the terms and conditions attached to special offers. 
0 Comments



Leave a Reply.

    Archives

    March 2020
    March 2019
    June 2017
    April 2017
    February 2017
    January 2017
    December 2016
    November 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    August 2015
    May 2015
    April 2015
    March 2015
    February 2015
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    December 2013
    November 2013
    September 2013
    August 2013
    May 2013
    April 2013
    March 2013
    February 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    September 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011

    Categories

    All
    Interest Rates

    RSS Feed

Powered by Create your own unique website with customizable templates.