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Online mortgage Sites - What you need to knowToday the Internet has made the process of searching for home mortgage loans much simpler. There are a multitude of sites you can visit from the comfort of your own home. However, greater access to information has also increased what can best be described as false advertising. Some of these online sites are excellent while others deliberately contain misleading information. Here are some common issues you need to keep in mind as you visit these sites.
Current Interest Rates When Australian mortgage interest rates change, comparison mortgage websites are informed and are expected to update both their base rates and comparison rates on all products. In many cases, this doesn’t happen and the rate you’re looking at that seems too good to be true is too good to be true, because it is out of date! Guarantees Beware of sites that offer guarantees of the lowest rates available. What do they offer if you find a lower rate elsewhere? Some claim cash back guarantees but if you read the fine print such exaggerated claims have enough escape provisions to make them worthless. Claims of Independence A truly independent site will have no direct financial interest in the loan you select. However, many receive commissions from the lenders and while this is perfectly legal, it begs the question of whether or not they are truly independent. In some cases it is not possible to verify these claims so the best you can do is to look into direct lender loans for a comparison. In addition, you can search for reviews and forum comments on the comparison site you’re considering. Bait and Switch Loans Some lenders entice people with an unbelievably low rate, which becomes even more unbelievable when the prospective borrower learns the rate is not available to them due to their particular situation. If you encounter this practice, run. Go somewhere else. Product Enquiry Forms If you’re already been on some of these sites you may have experienced this deceptive practice. You see an enquiry form for a specific mortgage product, sometimes from a specific lender. You submit the form and then you start getting calls and emails for totally different products from different lenders. Let the buyer beware, as this practice does not speak well for the ethics of the site. Featured Listings Once you’ve entered some preliminary information, many sites tell you they will return a list of best mortgages for your situation in rank order. However, in many cases the first results will actually be featured listings from lenders who pay the site owners a commission for a top ranking. |
