In recent years, the average Australian’s use of price comparison websites has exploded. These websites provide a convenient one stop shop for buyers to quickly and easily compare a range of service providers for anything from insurance, broadband and mobile phone plans, through to car servicing, fuel prices and yes, home loans.
Whilst these sites are an excellent tool for home buyers to get an understanding of the different product offerings and rates of some of the major lenders, they do not provide a complete picture, so you could be missing out.
Here are some of the Pros and Cons of using a comparison site to shop for your mortgage as well as some general advice on how to ensure you select the loan and lender, that is right for you.
Pros
- Save Time
We are all busy, and shopping around for a home loan unguided is time consuming. Comparison sites are a great way to quickly compare some basic information across hundreds of products and lenders with little to no effort. However, be aware that many these sites have relationships with certain institutions and may apply preferential treatment when it comes to how they present information, as well as who they choose to display on page one. Remember, that a good home loan is more than the lowest current interest rate. The T&C’s that are applied to a facility will have long term impacts on your finances, it is always best to consult with an independent professional before applying for any loan.
- Save Money
Comparison sites offer the convenience of presenting consistent information across all “listed” products, as well as the tools to sort by interest rate, repayment amount, entry and exit fees etc. They also provide information from lesser known lenders that you may not find when conducting your own research. This means you may be able to save a significant amount of money in the long term, with a less well-known lender that has a more competitive product offering. That being said, the list of results is not an exhaustive view of the marketplace, and still should only be used as a guide.
Cons
- The Dreaded Follow Up Call
Be aware, that comparisons sites are a business, and they make money by providing your contact information to lending institutions, so they can market their offerings directly to you. You can be sure, that if you provide your contact details in exchange for a quote you will receive a phone call, or many phone calls.
In comparison, working with a mortgage consultant means that you receive the same market comparisons, tailored to your needs and anonymously, so your dinner time can remain uninterrupted.
- Your Information is Not Always Kept Private
Again, whilst not all comparison sites are the same, some of them do provide information you provide to them to 3rd parties. When using any comparison site make sure you read and understand the disclaimer when it comes to providing your information. I know we are all guilty of not always reading the fine print when it comes to online form submissions. However, when you are providing so much detailed information about yourself, your family, your income etc, it is imperative that you take the time to ensure that this information, if you choose to provide it, is subject to a level of privacy that you are comfortable with.
- Lack of flexibility
As I have said, these comparison sites are convenient for mass research, but they do fall short when it comes to tailored advice and customer service. The information these sites use to provide comparisons is at best scratching the surface of what it takes to really understand your needs as a buyer and provide you with products and offerings that will suit both your immediate needs, and long-term goals.
Working with a mortgage professional, gives you the opportunity to receive friendly expert advice that considers your unique situation. Just like a comparison site, mortgage consultants save you time, have a wide visibility of the market and various product offerings as well as a wealth of experience in negotiating the best deal to meet their client’s needs.
Bernie Kyne
“Mortgage Professional”
Call: 0400-141-757
