Stunts, gimmicks, and downright lies are being used by the big banks and building societies to lure customers to enter into home loans.

Fierce competition in the bank world and with banks making big bucks, they don’t have your best interests at heart.

A tough mortgage market has seen many reduced introductory home loan rates with attractive honeymoon periods.  But while these may be tempting, these products may not actually be the cheapest on the market.


Make your dollars go further by following our five tips when you enter into a mortgage:

  1. Always read the fine print.  If you don’t understand it, don’t sign it until you do.
  2. If it sounds too good to be true, it probably is!  Look for the catch.  Are you locked in for a certain period? To qualify for a great mortgage interest rate on your home loan is there a minimum lend amount? Do you need to have direct debits and all other banking changed over to the same lender?
  3. Don’t fall for the best deal of the day, or the shiny gimmick.
  4. What are the other banks offering?  The big four usually have higher rates than the non bank lenders and mutual funds.  Shop around.
  5. Compare the revert rate with other standard variable rates in the market at the moment.


If you have a good deposit, remember you are always going to be in a strong position with the bank.  So don’t be afraid to negotiate down the bank’s standard variable rate.

If you have a small deposit, consider a three year fixed rate.

A good strategy when comparing banks is to ask what the revert rate is, and compare these between banks.  This will give you a good indication of what to expect when your honeymoon period is over.

Also check out important loan features like fees, customer support and whether your accounts with the bank will be charged account keeping fees. Help keep your other financial management costs down, and don’t be afraid to negotiate either.

Remember, this is your money, and you worked hard for it!