If you’re an existing home loan customer, knowing how to negotiate a better home loan interest rate with your bank will ensure that you’re always getting the best rate on the market to save you dollars. It’s not always easy though and if your bank won’t budge, you may need to refinance your home for better results that align with your current financial needs. Read our top 5 steps to help you negotiate your interest rate from banks and discover how a great mortgage broker can help the process.
Understand Your Home Loan and Interest Rate
You can’t negotiate a better interest rate if you don’t fully understand the ins and outs of your current home loan product! Do some research and make sure that you know what your interest rate is, if your loan is fixed or variable, whether the repayments are IO (Interest Only) or P&I (Principal & Interest) and whether you’re paying an owner occupier interest rate or investment interest rate. Once you’ve got the details, you can begin working out what changes can be made to reduce your rate, such as converting from IO to P&I.
Research and Compare the Competition
Start researching competitor offers and compare them to your existing home loan. You can do this yourself or consult a mortgage broker who will have access to a wide range of lenders and can provide expert advice on your current rate and further opportunities.
Contact Your Bank and Speak to the Retention Team
Now that you have all of the information, speak directly to the retention team at your bank and ask them to reduce your interest rate. Banks tend to give you the best results when there is a clear threat of refinancing and losing you as a customer. A mortgage broker can help lend you some negotiating power.
Know How to Haggle
Existing home loan customers need to get serious about negotiating a better interest rate. This means haggling! Make it clear that you are prepared to refinance if the bank won’t cooperate with you. When the bank makes an offer, reject it and request to speak to someone higher up. You can even request a discharge form to signal you mean business.
Refinance For a Better Deal
If all else fails, refinance. Another lender could offer you a much better deal that sees your home loan rate drastically reduced to free up your finances for the finer things in life.
Let Aquallis Finance Find You the Lowest Interest Rate
Aquallis Finance knows exactly how to negotiate a better interest rate with your bank and can assist you throughout the entire process. We have access to over 40+ lenders in Australia to compare home loan products and can help you to refinance if that is the best solution for your needs. Call us today to take the first step.