using a deposit bond or selling before you buy, as it will be much more cost effective for you than another loan. 21. Choose the loan that suits your needs Choosing a loan is about knowing what you want. Draw up a table of potential home loans and rank them. Make a list of all the features that are important to you and rank them according to importance. Give each feature a score out of 5 - one for unimportant right through to 5 for indispensable. Use this technique for ranking the loans on offer and pretty soon you'll see the one that's right for you. Remember, different loans have different purposes so you need to match a loan to your need. Taking out an interest only loan suitable for investors if you are planning to live in the house is just foolish. Ditching the features you don't need can save you up to 1 per cent on the interest rate of your loan. Over 25 years that's a whole lot of money you've just saved yourself. 22. Don't be afraid of smaller lenders with cheap rates Since the advent of the mortgage managers over the past five or six years there's been a lot of talk about smaller and "non-traditional lenders" and how they have forced interest rates down. With the property boom, plenty of opportunities sprang up for smart lenders with low fees willing to take on traditional lenders and many have done very well indeed. Some borrowers