An exercise in which you compare home loan options is relevant for those who are looking to purchase a new home and those who have bought property some time back and already have a home loan that they are repaying. While it is obvious that those who are purchasing a home for the first time should compare home loan options, some people may not understand why those who already have one should compare home loan options again.

The reason, in fact, is simple. In this dynamic economic scenario, home loan interest rates can vary to such a large extent that a home loan option that you may have considered great, may no longer be a lucrative option anymore. If you had chosen a fixed rate home loan you shall only know what the current fixed rate interest rates are if you current compare home loan interest rates with the one that you are paying. Assessing the options and understanding what you stand to lose in terms of fees and penalty and what you stand to gain in terms of lower payments or faster repayment is only possible if you compare home loan options in a structured manner.

It is also advisable to take the help of a mortgage broker or a financial expert when you compare home loan options. This is mainly because when you compare home loan options that are far more aspects to consider than only the monthly instalments, home loan interest rates and tenure. Other aspects include average annualised percentage rate, monthly or annual processing or accounting fees, redraw options, prepayment penalty or fees, exit fees and charges, loan to value ratio (LVR), loan flexibility and online banking options.
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