How to Get a Lower Interest Rate on Your Home Loan


If you're convinced that your home loan repayments are higher than they should be, there is a solution. Sometimes, all you need to do is negotiate if you want to get a better deal on your loan. Regularly reviewing your loan status and comparing the alternative options on the market will help to ensure you get the lowest rate possible.

Simply refinancing your P&I loan could lead to a saving of over $2,000 within the first 12 months. Here are just some of the ways that you can make sure you're getting the right deal.

Present Yourself as the Ideal Borrower

Show yourself to be the ultimate borrower, and banks will line up to give you a lower rate. Lenders look at various things when assessing their borrowers, such as:

  • Lower LVRs (LVRs of 80% can harm negotiations)
  • Good credit scores
  • Steady employment
  • No loan defaults or missed repayments

If you've struggled with your credit history, or you're a self-employed person without a regular income, you may struggle to get that ideal interest rate.

Do your research

Knowledge is power, so make sure you have plenty of it. Before you begin speaking to your lender about how you can reduce your interest rates, shop around to find out what deals other lenders could offer. If you can present a great deal from another provider to your current lender, they may be more likely to adjust your interest rates.

Showing your lender that you know your stuff is a great way to make sure that you start on the right foot when bargaining. Even if your lender refuses to give you a better rate, at least you know what you can get elsewhere.

Ask for the Same Rate as New Customers

Sometimes, the best way to get something is to just ask for it. Contact your lender and request the same rate that new customers get. You might find that if you're a good customer, your lender will be willing to negotiate to keep you.

If you have a strong credit history and you've made every home loan repayment that you should have up to now, then you may be in a good position to negotiate. If your lender refuses to give you the same rate as new customers, ask them how low they are willing to go.

Be Ready to Change Provider

Before you go into your negotiation, make sure that you're prepared to walk away from your lender if they don't give the right deal. If your provider refuses to buckle and give you the offer that you deserve, then don't be afraid to go elsewhere.

The process of refinancing your city apartment is rarely as complicated as it seems. These days, you can usually complete the process with very little paperwork. Within a week, you could be settled in with a new lender, and paying a lower price.

Highlight your Loyalty

If you're uncomfortable with the thought of changing lenders because you've been with the same company for so long, then use your loyalty as a negotiating tactic. If you've had a good history with the lender for ten years now, remind them of that during your conversation.

Remember, before you ask for your new interest rate, it helps to know your position. Check that all your repayments have been delivered on time, and your LVR has been getting lower. This will give you a fantastic current timeline of your loyalty to demonstrate during your conversation

Keep up to date

get updates on properties, news and more across Melbourne

More To Explore

Lifestyle

Check out This New “Steampunk” Apartment in St Kilda

If you thought that your sense of style was quirky, wait until you see this fantastic steampunk-style apartment in St Kilda. Designed with furniture inspired by the hit film “Alien,” and light fittings that come straight from pieces of machinery, this is a home truly like no other.  Created for those with a bold approach

Lifestyle

Introducing the Bird Man Who’s Winning a Case Against Australia’s Biggest Landlord

Peter Pierre Gawronski has been making the headlines across Australia lately as the “bizarre birdman” who has won countless cases against the NSW Land and Housing Corporation. Gawronski was recently summoned to a meeting with housing officials at the beginning of August, where he arrived at court with his rainforest parrot, Caesar on his shoulder. 

Lifestyle

Australia Introduces Futuristic New Sky Garages

Dame Nellie Melba is one of the best-known women in Australian history.  You can see Dame Melba’s face on the $100 note, in recognition of her achievements as an incredible globally famous soprano. As she rose to success, Melba’s fame coincided with the transition from the era of the horse-drawn carriage, to the age of

Insider Tips

Introducing the Most Popular Suburbs in Melbourne

When it comes to investing in valuable real estate, location is everything.  Now that Melbourne is finally facing a market turnaround, it’s important for locals to consider their options for neighbourhoods carefully. The suburb that you choose to create your home in today could make or break your chances of a profit in the future. 

Looking for a property?

Search across Melbourne with Buy Melbourne Apartments

Copyright Buy Melbourne Apartments 2019

Built with by Idea Engine