Published in AustralianIT, July 1 2003

BUYING a home may well be the great Australian dream, but organising a loan to finance it can be a nightmare.

Trying to sort out options offered by banks, building societies, credit unions, mortgage brokers and other finance providers is enough to make anyone give up searching for a place to live and resign themselves to a lifetime of rental.

It's little wonder, then, that shopping for a loan online has become so popular.

Potential borrowers can compare interest rates, terms and conditions from pretty well all players in the market, without a high-pressure salesperson breathing down their neck.

Of course, comparing dozens of different providers can be time-consuming, even if you do it online. An increasingly popular alternative for home loan finance is a mortgage broker, as they try to match loans to specific requirements.

A study by the Australian Prudential Regulatory Authority earlier this year found home loans organised through brokers were worth $86.6 billion, accounting for 23 per cent of the total.

Most industry figures suggest the figure is higher when non-home loans are included -- about 30 per cent.

Brokers have been quick to take advantage of the internet as a means of offering services.

Providers such as eChoice encourage customers to provide loan requirements online, and then respond with a list of matching offers. Such services normally come at no cost to the lender.

The broker's commission is usually about 1 per cent.

If you don't want to use a broker, the internet provides an easy means of comparing what's available. Every major bank and finance provider gives loan details online, and most include mortgage calculators to allow users to work out repayments and total costs.

According to web monitoring service RedSheriff, the most-visited bank sites are Commonwealth, Westpac, ANZ and National. Within the broader finance space, eChoice is the most visited mortgage broker, followed by the ninemsn loan site.

No matter how you source information on your loan, consumer advisory groups emphasise the importance of reading the fine print and ensuring you understand all the conditions associated with a loan offer.

You may be used to clicking on the "I agree" button when installing software, but when organising a home loan, a lot more is at stake.