Australia is currently experiencing a historic period of low interest rates, however just because rates are already at record lows doesn’t mean you can’t try and get a better deal.
Many mortgage holders don’t take the time to simply call up and ask their home loan provider if they can offer them a better rate. While there’s a chance that your provider won’t budge, recent research from Mozo indicates that seven in 10 Australian home loan hagglers have been able to negotiate a cheaper interest rate.
Sometimes all you need to do is ask for a better deal, but if that fails here are some tips that might help you make a better case for yourself:
Show competitor offers – Before picking up the phone it can pay to do your research. Find out what other lenders are offering and have the information ready to provide to your current provider so you have some leverage.
Bring more business – Do you have financial products with another banking institution such as insurance or credit cards? Offering to bring these over could help sweeten the deal.
Play the loyalty card – If you’ve been a loyal customer with your home loan provider for a number of years then use this to your advantage. Show that you have a longstanding history of making your loan payments on time and help them realise that they would be missing out to lose you as a customer.
Be ready to walk – If all else fails then be prepared to switch to a lender that can provide you with a better deal. Keep in mind that there may be exit costs, but it may be worth it if you’re paying a lower rate in the long term.
Keep asking – It may be tempting, but don’t stop asking for a better rate or deal once one has been offered. The first offer may not be the best so keep asking until you’re satisfied that you have gotten the best deal possible.