The purpose of the loan should always be the primary consideration. The lowest interest rate can mean forgoing features including offset, redraw, and early payment facilities. It can also affect businesses in particular with longer lead in times and reduced funding amounts depending on the type and conditions of the loan. 

Loan application costs, annual fees, review fees, monthly fees, package fees, and risk fees are some of the many types of costs that impact the overall costs of lending. While interest rates are important, often the true costs, comparison rates, and average interest rates during debt consolidation are overlooked. 

Lower interest rates can save you over the life of the loans and, as a general rule, lower interest rates are preferred. Keep in mind that the purpose of the loan, annual fees, and other costs can result in an overall more expensive product. 

Early repayment penalties and hidden conditions can slow your progress and minimise a more tax effective early repayment strategy. Talk with us amount how to achieve your goal with the most appropriate product for your goal.