What's the best way to approach my bank to try and obtain a better interest rate?

Hi Holly,
One way is to just visit a branch or call them up and ask them if that is the best deal they can offer you.
If you have a broker they should also be offering to review your mortgage on regular occasions. If you don't have a broker it may be worth looking into meeting with one. The benefit of having a broker review your mortgage over just asking your bank to reduce your rate is that a broker can look at more options available whereas a bank can only tell you what the best rate they can offer is.
Another benefit of a broker over going to the branch directly is that a good broker will apply for a discretionary discount which can sometimes be more than what a branch will offer as it requires a couple of extra steps to request the better rate.
Finally using a broker won’t cost you a cent.
If you have any questions feel free to give me a call on 0432 570 099
Regards
Nathan

1. Go direct to branch or call customer service line and request a discount to current rates.

2. Engage a broker. A broker can explore other options and loan structures that may be more suitable for you inline with short, medium and long term goals. A decent broker can also approach your existing bank to negotiate a discount on your behalf.

Hope this helps :)

Hey Holly

If you are unhappy with your current home loan it’s perfectly acceptable to approach your lender and ask for a better rate.

While it’s never guaranteed, one way to go about this is to look online at the rates your lender is offering new customers. You can use this as a point of negotiation, or flat out request this rate. After all, why should a loyal customer not be rewarded with the same low rates as new customers?

In addition to asking your lender for a reduction on your interest rate, also ask if they can reduce your fees or include some extra features.

Also, spend some time online to compare home loans so that you can see what rates and fees other institutions are advertising. If you find that they are lower than what you are getting, take this information to your lender to show them what their competitors are offering. http://www.ratecity.com.au/home-loans/compare

Make sure that if you say that you will take your business elsewhere that you mean it, because you may have to do this.

We have an article online that should also be able to help if you want more information - http://www.ratecity.com.au/home-loans/articles/switch-negotiate-better-rate

Good Luck!