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Staff Reporter
Borrowers have been given greater assistance in finding the right mortgage, after the Federal Government officially rolled out its loan factsheet initiative yesterday.
Under the Federal Government's banking reform legislation, lenders must now provide a home loan factsheet on request.
RateCity's chief executive Damian Smith said home loan factsheets will make it easier for borrowers to compare apples with apples before they apply for a home loan.
"Anything that simplifies the lending process and encourages greater transparency in the home loans market is a good thing for competition," he said.
"The factsheets will be standardised so lenders will be required to provide borrowers with information in the same way, making the comparison process easier. This will help first-time borrowers in particular compare loans side by side, and give them just a little more bargaining power – which is a good thing."
Headline and comparison interest rates, fees and charges, the total financial cost over the life of the loan and information about the impact of rate changes are all included in the factsheet.
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