What kind of mortgage lender suits you? # Remember you are the customer # Write a checklist of what you want # Interest rate shouldn't be your sole focus

GETTING a home loan has become much tougher in the wake of the global financial crisis, but borrowers should remember that they are still the customer.

While many may feel more like beggars than choosers these days, home loan experts say there are several strategies to help you get what you need.

Smartline Personal Mortgage Advisers managing director Chris Acret suggests writing a checklist of what you want from a loan, ensuring it's flexible in case your needs change.

"For example, the lender you have your transaction accounts with may not have the best loan product to suit your needs," he says.

"Things that may seem unimportant now could prove very inconvenient down the track. At the least, be prepared to consider other lenders."

The interest rate should also not be the sole reason for your choice of loan.

"A honeymoon rate might look attractive now but it's not likely to save you money when and if you decide to use the lender's other services such as repayment holidays, a redraw facility, a loan top-up or accessing ATM facilities," Acret says.

"At the start of a mortgage, you may not think there is a possibility you might repay or refinance your loan within four years but your situation may change, meaning exit fees will become an issue."

It pays to have a lender who can provide the right structure. "This might be particularly important if it's your plan to eventually make your home an investment property."

Mortgage Choice spokeswoman Kristy Sheppard says about 40 per cent of all new home loans in Australia are sourced by mortgage brokers.

Finding the right broker requires a little homework and well-planned questions.

"Questions should be asked about their service standards, training, accreditation, range of lenders and products, experience, ethics and commission structure," Sheppard says.

"You should also check if they have their own products and, if so, why they put them forward as suitable."

Five top tips

1. Understand your own goals and deliver a checklist that lenders must satisfy.
2. Remember that interest rates are just one part of the equation.
3. Look at the big picture, with an eye to your possible future needs.
4. Make sure your lender offers the correct loan product and right structure.
5. Shop around, and seek professional advice if needed.

Source: news.com.au