If you’ve got a mortgage, or are thinking about taking one out, you’ve probably heard people talk about making sure you get a “good deal”.

Yet how do you do that, and what counts as a good deal anyway?

Comparing home loans involves more than simply checking an interest rates comparison website. There are often a range of factors to consider, and what matters to one borrower may not be as important to another.

Here’s what you could think about if you’re comparing mortgages, and how we can help you find one that’s suitable for you.

Interest rates are only part of it

Interest rates tend to attract attention because they’re one of the most obvious aspects of a home loan, and you can often easily see what rates various lenders are offering.

Remember though, they aren’t the whole picture.

Rates generally change over time, and one lender with a special rate now might not be the one with the lowest rate in a few months’ time.

When you’re considering which lender is a good fit for you, you’ll also need to think about what else is being offered alongside that interest rate.

Some other things that make a big difference include:

Structure: Do you want to have just one home loan, on one fixed term? Or do you want to divide the loan between a few different terms? Do you think you may benefit from a revolving credit facility or an offset for a savings account?

Flexibility: How much will you be able to change your loan if you need to? Are you able to pay it off more quickly, if you want to? Will you be able to opt for an interest-only payment period if that’s appropriate?

Compatibility: Depending on your borrowing purpose, it might also be important to find a lender who has appetite for the sort of property purchase you’re considering.

Cheapest isn’t always best

When it comes to finding the right fit, “cheapest” may not be the most suitable option for your needs.

People sometimes assume that a lender offering a home loan rate that is, for example, 0.25 percentage points lower than another is offering a “better deal”. However, if the borrower ends up paying off the loan for longer, or cannot move to another property without fees, it may ultimately work out more expensive.

If you don’t have the flexibility you need to make your home loan work for you, it could be dearer in the long run, particularly if you’re someone who might like to pay the loan off more quickly and there are restrictions on that.

Sometimes, even things like cashback payments can make a lender a more suitable option than another, even if their headline interest rate is a little higher.

You could have your home loan for a long period of time, so a loan that works with your needs could be more valuable than one that has a slightly lower interest rate.

Your circumstances matter

As with many financial decisions, there’s no one-size-fits-all solution for home loans.

The right option is the one that fits your individual circumstances.

At SHARE, we can help you look at what’s available and determine what might be the most appropriate for your needs. We have a good overview of what is happening in the market and can help you find an option that will be comfortable both now and into the future.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.