Australians will find it easier to compare home loans with the creation of new federal consumer protection legislation, according to an expert.
Lisa Montgomery, head of Resi Mortgage Corporation, a consumer advocacy in Australia, said that the creation of consumer credit protection legislation in July will help customers not to get “unsuitable’’ loan products from lenders.
“That means they will now have to ask you plenty of questions to find out what type of products will suit your particular requirements,” Ms. Montgomery told the Courier-Mail.
She also said that mortgage buyers must do their own research and compare home loans, noting that the lowest possible mortgage rate does not mean it is the best possible home loan.
Ms. Montgomery observed that home loans with higher rates also offer greater flexibility, which could result to cheaper outcome over the course of the loan.
Data from the Australian Bureau of Statistics showed that housing finance commitments for owner-occupied homes dropped 3.9 percent in June, a decline that is more than twice the market forecast.