The following questions can help you to better understand the loan products you are about to be offered. Here are 30 questions you can ask your lender to get you started in your home loan conversation with them. Of course, add your own questions here as a reminder for yourself too.

• How much can I borrow?
• What are the repayments on this loan? (Although you will work out your own repayments, it’s good to know your obligations for paying off your home loan from your lender),
• What proof do I need to provide to borrow that amount?
• What is the current interest rate?
• What current honeymoon loan do you offer and what does the interest rate default to after the honeymoon period ends? (Don’t let them give you a vague answer to this question, ask them to be specific)
• Am I able to negotiate a better deal during the term of the loan?
• If I wanted to negotiate a better deal, what is the process?
• How long does the home loan run for (or what is the loan Term)?
• Can I make additional repayments?
• Are there any fees or additional charges for making extra repayments?
• Are there any fees or additional charges for paying the home loan off early?
• Are there redraw facilities available on this loan?
• Are there any fees or additional charges for withdrawing money?
• Can I make interest only repayments (and how long for)? (If things get tough due to illness or major life changes, you need to know the available options if you need to use them)
• Can you list and cost all the fees and charges?
• What are the terms and conditions of the loan?
• Are there fees or additional charges for changing loan products?
• Are there fees or additional charges for exiting the loan early or changing home loans?
• Is there an everyday bank account available to transfer the repayments to the home loan account?
• What fees or additional charges are involved in setting up and using such an account?
• What other loan products do you have (can I see a full list of these loans)?
• Are there any new loans which are about to be made available (and when will they become available)?
• Are there any other fees?
• Can you check again, what other fees may arise?
• How much does it cost to open an offset account? (I’ll talk about offset accounts soon)

Additionally, you may like to ask questions relating to different scenarios through “what if” questions. This may be about any possible situation that may come up during the course of your home loan. By posing these questions in terms of ‘what if’ scenarios, it will help you to think about how your repayments will be affected by possible future life events. Five sets of questions may include:

• What if times got tough and I cannot meet repayments; what are my options and what would happen?
• What if I want to refinance my loan, how would I go about doing that?
• What if I need to take a small lump sum out of my home loan to pay for miscellaneous expenses (e.g., car registration, repair washing machine)? Is there a limit on the redraw amount? Are there fees for taking out too much or too little (seems like a silly question but you would be surprised!)?
• What if I wanted to buy another property and take out a large amount of money from my home loan account? What would happen then?
• What if I wanted to buy another property and wanted to use equity? What is the percentage of equity that I can use and what are the associated fees?

By asking lots of questions you are aiming to gain as much information and understanding as possible about your loan product before you sign the contract. This will help you choose the right home loan that provides you with the most value, and can help you to achieve your desired outcomes and save you lots of money.

And here’s a bonus question:

Can I have a copy of your notes based on our chat?

Before you go rushing off to meet with your lender, here are three points to know before you visit your lender, coming up in the next blog post.