Is now the perfect time to have "the talk" with your current home loan lender and review your rates?
Oleg Mazkovoi | June 07, 2018
More than two thirds of existing mortgage holders have not reviewed their mortgage in the last two years and could be paying far too much. There could be some serious savings to be made with the ability to cut your existing rate by over 0.50% - which could equate to over $50,000 in savings for a $500,000 loan. Some tips to use when you negotiating with your current lender:
1. Drive a hard bargain
Generally, the first discount your lender will give will not be their best, so always ask for better.
2. Price match
Have a look online or ring around to see what the current best offers are in the market. Hopefully, your current lender will value your business and price match the competition to stop you from walking away.
3. Bundle
See if you can bring some of your existing financial products into the lender that holds your home loan. Things like credit cards, super or home insurance can potentially help strengthen your rate, however make sure that this makes overall financial sense. No point chasing a cheaper home loan rate if you end up spending more overall.
4. Be prepared to walk
If you are not satisfied with what your lender is offering, then be ready to follow through!
If you would like some help or guidance with negotiating your rates then please also reach out to a mortgage broker who will be able to either sharpen your rate with your current lender or find the best lender/product for you.
If you'd like to chat please call me on 0420 643490 or simply ask me a question
