Beware of the home loan vampire this Halloween

As we sink our teeth into the spooky season, a spine-tingling cautionary tale about a creature most foul and cunning, confined to the shadowy corners of your finances until it’s time to strike.

Those looking to compare home loans or refinance, take heed, because the home loan vampire is a very real beast. In fact, it might already be in your midst…

‘Yeah, righto,’ you might be thinking, ‘everyone knows you have to actually invite a vampire in. That’s Dracula 101.’

To that I say, you’re right. And the home loan vampire is no different. Only… you might not have realised you let them in in the first place.

A home loan vampire isn’t after blood. No, its true desire is to be a drain on your finances, slowly and methodically extracting your hard-earned cash without you even realising it. We are, of course, referring to… fees!

Ongoing home loan fees add up in the long run

While most home loans come with up-front and discharge fees, a careful comparison of home loans reveals that some even charge annual or monthly fees.

A monthly home loan fee of $10 doesn’t sound all that bad, but you may end up feeding the home loan vampire an extra $3,000 after 25 years. Or, if you’re being charged $400 annually, you’re looking at an extra $10,000 by the time your 25-year loan is paid off.

But the home loan vampire’s reach doesn’t stop at ongoing fees.

Home loan features with fees attached

If you’re looking for home loan features like redraw facilities or offset accounts , make sure you compare home loans to ensure the options you shortlist don’t charge fees.

While not all home loan providers offer these sorts of features, you can often find loans that come with fee-free redraw facilities or optional offset accounts that don’t charge you any account-keeping fees.

Due diligence the silver bullet to vanquish the home loan vampire

Whether you’ve yet to purchase your new home, or if you’re already on the property ladder, one way to fight the home loan vampire is to do your research.

Mozo’s home loan comparison page features a range of products, complete with the ability to estimate your initial monthly repayments, a quick overview of a product’s features, and some more detailed info, like what fees are included.

It’s also worth checking out the best home loans in 2023 for some award-winning loans, including some that the Mozo editors thought were worth mentioning.

For now, keep your eyes peeled for unnecessary fees, and check out some of the featured home loans below…

Happy Halloween!