St Kilda Big banks have started lifting their variable interest rates for both owner-occupiers and investors, making it a good time for mortgage holders to start looking at making savings.
Many people don’t realise that despite rising interest rates, the Australian home loan market is very competitive and many lenders are willing to offer better terms or discounted rates if it means that can keep your business.
Do your research
Before you start negotiating with your lender it’s a good idea to find out what kind of home loan rates are currently available through other lenders. You should also find out what your lender is offering to their new customers. Once armed with information you will find it easier to justify being offered a better rate, which will give you some bargaining power.
Just ask
Many people have a set and forget policy when it comes to their home loan, but this could be costing you significantly. Sometimes to get a better rate or deal all you need to do is ask for it, after all you have nothing to lose from it! Factors such as a good track record of making payments on time and customer loyalty may help secure a better deal. Don’t forget to play up these factors when making your call.
Be ready to walk
If you have weighed up the pros and cons and find a better deal then don’t be afraid to switch lenders if your current one won’t come to the party. Lenders would much rather keep their customers so they may make you a good offer if they fear they will lose your business.
Switching to a new lender isn’t as difficult as it seems and it could end up saving you thousands. Just don’t forget to take into account any exit fee or new signup fees if you do decide to make a switch.
Talk to a broker
If you’re confused, don’t know what to look at, or aren’t the best negotiator, there’s no shame in sourcing a mortgage broker. It’s a broker’s job to find the best deal on your behalf.
