Stan and Wendy Collins have found the home they want to buy. The house is for sale for $180 000. They have a deposit of $30 000. At present they are paying $340 a week in rent. They would prefer to repay between $280 and $310 a week on their new home loan.
TASK: Which home loan should they choose?
You are to compare 3 different home loans from 3 different financial institutions and decide which one the Collins family should choose.
Points to consider:
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How much do they need to borrow? |
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Do they have the required deposit if one is needed? |
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How often will they make their repayments? |
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What will be the term of the loan? |
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What is the interest rate? |
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Fixed, variable or a combination? |
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What are the fees, both initial and ongoing? |
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Can the loan be offset? |
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Can they pay the loan off early? |
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What is the total amount of interest they will pay? |
What to do:
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Print 3 copies of the summary sheet for comparing the loans. Download a copy in MS Word |
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Visit the following sites to gather and record information on the summary sheet. |
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Analyse the information and make your choice of home loan |
Sites to visit:
| National Bank | St George Bank | The IMB |
Presentation:
Present your choice of home loan in a letter to the Collins.
Your presentation should include:
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the three loans and financial institutions you chose |
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your reasons for choosing the loan you did based on the information you gathered |
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a copy of the summary sheets |
