Is the loan with the lowest interest rate the best loan for you??

To determine if this is the case, you should decide what you need the loan product to do for you and also what fees are attached to the loan.

- Do you need to pay an annual fee to get the lower rate?
- Do you need to pay a monthly fee to get the lower rate?
- Is this a basic loan with “no frills” eg no redraw allowed, restricted on the amount that you can repay?
- Is this an introduction loan and if so, is it a fixed or a variable interest rate?
- What term is the introduction period?
- What interest rate or product will the loan revert to after the introduction period?
- What fees are payable up front?

These are just some of the questions you need to ask before determining the best loan for you and the result may well be that the loan with the lowest interest may not suit your needs.

Karen Cook
Branch Manager – Glendale

February 16th, 2009 | Leave a Comment »