Offer comparison framework
Compare the whole written offer, not only the rate
A useful renewal comparison puts each written offer on the same footing first. Then it checks the payment, flexibility, costs, and conditions that can affect the decision after the headline rate is gone.
Start here
Make the offers comparable first
- Use the same assumptions. Match the balance, remaining amortization, payment frequency, and start date.
- Keep every figure in writing. Record the rate, term, payment, expiry date, fees, and contract features for each offer.
- Change one variable at a time. This helps show whether a difference comes from the rate, amortization, payment schedule, or a contract feature.
What to compare
Six parts of a fair renewal comparison
Rate and payment
The rate influences the payment and interest cost, but a lower rate is only comparable when the remaining terms are similar.
Check: Record the written rate, rate type, estimated payment, and payment frequency.
Term and rate type
A term determines how long the rate and contract rules apply. Fixed and variable options can create different budgeting trade-offs.
Check: Compare like with like before deciding whether a different rate type is worth the change.
Amortization and frequency
Different amortization periods or payment schedules can make two offers look cheaper or more expensive than they really are.
Check: Use the same balance, remaining amortization, payment frequency, and start date where possible.
Prepayment and flexibility
A mortgage can be more useful when it permits the extra payments, payment increases, portability, or conversion options you may need.
Check: Confirm lump-sum limits, timing rules, portability, and whether unused privileges carry forward.
Penalties and switching costs
Fees, penalty wording, discharge costs, appraisal, legal, transfer, or administration costs can change the practical value of switching.
Check: Ask for the costs and penalty method in writing before treating a lower rate as a net saving.
Expiry and final conditions
An attractive quote is not a decision until its expiry date, qualification conditions, and final written terms are clear.
Check: Keep the complete written offer with the date, lender conditions, and any cashback or special terms.
Decision check
A lower rate is not automatically the better offer
For example, one offer may show a lower rate while another has more useful prepayment privileges, lower switching costs, or terms that better match your plans. Compare the payment, term, amortization, fees, portability, prepayment limits, and penalty wording before deciding.
Before signing
Questions worth putting in writing
- Are all offers using the same balance, amortization, payment frequency, and term?
- Which discharge, transfer, appraisal, legal, notary, or administration fees apply?
- What prepayment privileges, portability rules, and penalty wording apply?
- Can you confirm the rate, payment, expiry date, and all final conditions in writing?