4. Check for extra features available

As you research possible home loans you may find there are other features that could prove useful to you. In particular, ask your lender about the terms of your redraw facility if you want flexibility built into your loan. If you are likely to move or sell the property before your loan is up, as most people do, you may want to ensure your loan is portable.

In other words, you can take the home loan from one property to another without going through the full application process again. Some home loans come with bonuses such as discounted insurance plans and fee-free credit cards, which you may want to take into account when selecting a home loan.

5. Read Fine Print

A home loan agreement is a legal document and therefore often incomprehensible. However there can be quite a few devils hiding in the details. You may think a 'default' is only if you do not pay the EMI. However, there are some banks who define default as when the borrower expires, gets a divorce, or the borrower is or are involved in any civil litigation or criminal offence.

Also, some banks have a security clause that makes that entitles the bank to demand additional security along with your loan amount in case property prices fall. If you fail to pay up, you'll be marked as a defaulter.