What is the Best Rate I Can Get as a Borrower?

Introduction

• Do small differences in rates matter?
  
  • YES! A “small” difference of 0.1% on a 6% variable loan of $1 mn would save you over 23K over a loan duration of 30 years. Compare that with “pay raise”, school fees, international holidays, coffee cups, etc. Instead of spending days agonizining over buying a cup of coffee daily or buying another pair of shoes, this is a decision that really matters.
• Why interest rates alone don't tell the whole story
  
  • One off and ongoing fees, cashback offers and introductory rates
• Why comparison rates are also not really useful
• Another complication - Over 80 lenders and 5800 loan products, finding the best rate rate is difficult
• Case study - informed buyer checking comparison sites and multiple brokers, more confused.
• Teaser about how Homerun calculates effective interest rates including all fees and costs and helps them find truly good rates

Factors influencing interest rates

• Your borrower profile factors:
  
  • Loan-to-Value Ratio (LVR) and how it impacts rates
  • Income stability and employment type
  • Credit score and history
  • Loan size (larger loans often qualify for better rates)
  • Property type (owner-occupied vs. investment)
  • interest type (fixed/ var)
  • Loan features - offset accounts, redraw facilities, credit cards, etc
• Lender considerations:
  
  • Risk appetite of different lenders
    
    • Penalty for borrowing from your existing bank
  • Specialty lenders (ADI vs. Non ADI, credit unions, non distributed institutions) vs. major banks
  • Current market conditions and RBA cash rate
• Factors you can control - level of borrowing, institution you borrow from, fixed vs. var, product features; everything else is relatively not controllable in the short run

The Homerun Difference

• Why traditional brokers might not show you all available options
• Limited lender panels and also limited to lender panels
• Homerun commitment 
• Examples of savings 

Finding Your Personal Best Rate

• Simple steps to prepare for your best possible rate:
  
  1. Improving your credit score
  2. Saving for a larger deposit
  3. Organizing your finances before application
• Questions to ask when comparing loans
• Common mistakes to avoid when rate shopping

Why Is the Lowest Rate Isn't Always the Best Choice or There isnt a Universal “Lowest / Best” Rate?

• Alignment with your financial goals
• The importance of customer service
• Future flexibility considerations
• When paying slightly more might make sense

Conclusion

• Recap of key points
• Encouragement to look beyond the most obvious lenders and advertised rate
• Call to action: How Homerun can help find your true best rate
• Homerun commitment reminder

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