Not sure which bank is right for you?
Read on to learn which factors you should keep in mind when choosing your bank.
Here you can read about:
- Which bank should I choose
- Why should I get several offers
- How do I find the right bank
- How do I know I'm choosing the right bank
Which bank should I choose? Are you considering buying a home? And are you looking for the bank that best matches you and your needs? When considering a home purchase, it is natural to look at the market for home financing in terms of home loans, and thus which bank is best suited to finance your purchase.
To find the bank that is the best match for you, it is a good idea to get offers from several different banks, so you get an overview of your options.
Why should I get several offers? In the Competition Council's latest report on the mortgage market, it is concluded that competition in home financing is low and that consumer mobility in the mortgage market is very low, corresponding to under 2% of all borrowers switching mortgage lender each year.
This means that the day you take out a bank loan, you are that bank's customer for many years — in other words, you become an unwitting consumer of financial products. This, combined with the fact that low competition is always a disadvantage for the consumer, is the primary reason the competition authorities clearly recommend surveying the market for financing in connection with your home purchase.
We know, however, that everyday life can easily override even the strongest recommendations and priorities, so that even the best intentions get ignored. But it should not be ignored. Instead, the conclusion should always be that you naturally need to gather different offers. The only question should be whether you handle that yourself, or whether you want help and buyer's advice.
How do I find the right bank? It will always be an individual assessment of your wishes and finances that determines which bank is best for you. It can be useful to draw on the experiences of people around you and learn about their choice of bank. As a starting point, the best solution is to investigate your options with the various banks yourself, to find out which bank best matches your needs.
In such a situation, we always recommend that you make use of independent advice to help clarify your options. Independent advice looks at, among other things:
- Which services you need
- What the bank's ethical foundation is, and in particular interpreting the banks' offers
- What significance it has for you — both now and in the longer term
Assessing your own needs is difficult because, as a consumer, you don't know what you don't know. But it is important to be aware of your needs and options, since that is precisely one of the basic conditions for achieving the best possible solution. Below we have listed some of the questions you can ask yourself before you start exploring your options.
How do I know I'm choosing correctly? As a consumer, it can be difficult to assess and compare solutions, service, price and offers from the different banks. It is important to fully understand the various banks' offers so you don't end up choosing the wrong one. In this context, remember that the banks are trying to sell you their offer, so always stay critical.
Our experience at Bomae is that many people often weigh solution and service more heavily than price. But all three parameters are important to consider when choosing which bank is best for you and your home purchase.
At Bomae, we help many home buyers each year find the best bank for their upcoming home purchase. As a professional sounding board and link between bank and buyer, we help navigate the financial jungle of solution, service and price, so the right match is established — whether that means your current bank or a new one.
Also read: Rate locks. Green loans. Buying a home without a down payment — is it possible? Financing your home
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