Beware of Clickbait Home Loan Offers
If you’re an owner-occupier planning to move up the property ladder, you’ve likely seen eye-catching ads promising “the lowest rates” or “huge savings” on home loans.
While these offers may sound enticing, they often come with hidden catches that could leave you worse off financially. Falling for clickbait home loan ads can lead to unexpected costs, wasted time and frustration. Here’s why you should approach these offers with caution and how to make more informed decisions.
Headline Rates Can Be Deceptive
Ultra-low interest rates: a common trick in clickbait advertising. These rates are designed to grab attention but often come with strict conditions.
For example, the rate might be a temporary teaser that increases after a short period, or it might only apply to borrowers with perfect credit history or significant equity.
Before getting excited about a low rate, read the fine print. Determine if it’s a variable or fixed rate, how long it lasts and the criteria you will need to meet. Focus on the comparison rate, which provides a more accurate picture of the loan’s total cost by including fees and charges.
Hidden Costs Can Undermine Savings
Clickbait offers frequently downplay or ignore fees. Lenders might charge application fees, monthly account-keeping fees, or penalties for early repayment. These hidden costs can significantly erode the potential savings of a low advertised rate.
When evaluating a home loan, request a full breakdown of fees and charges. Look beyond the interest rate to calculate the total cost of the loan over its full term.
The Loan May Not Suit Your Goals
As an owner-occupier looking to upgrade, your financial needs and goals are unique. Clickbait offers often focus on generic terms that may not align with what you’re looking for. For example, the loan might lack flexible features like offset accounts or the ability to make extra repayments, which can be important for those managing a larger property investment.
Don’t be swayed by flashy marketing. Instead, focus on finding a home loan that fits your specific circumstances and long-term financial strategy.
Wasted Time and Missed Opportunities
Pursuing a clickbait offer can lead to delays. If you apply for a loan based on misleading information, you might discover later that you don’t qualify or that the terms are not as advertised. This can disrupt your property search and leave you at a disadvantage in a competitive market.
Ready to secure loan pre-approval?
As an owner-occupier moving up the property ladder, it’s essential to approach clickbait home loan ads with a healthy dose of skepticism. While the promise of low rates and big savings is tempting, these offers often mask hidden costs or unsuitable terms.
Take the time to compare options, read the fine print, and consult a trusted mortgage broker like HoLo. By doing your due diligence, you can avoid the pitfalls of clickbait offers and secure a home loan that supports your goals and aspirations.
If you’d like to know more, book an appointment - it’s easy on your personal dashboard - or contact us.
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