With official interest rates at a record low, shrewd mortgage holders may take the opportunity to call their lender to ask for a better deal.
But when even a small interest rate reduction means potential savings of thousands of dollars, is a simple phone call really enough to get you there?
In 2020, your interest rate should have a two in front of it if you are a homeowner.
But while some lenders offer lower rates to new customers, it is not always so simple for existing customers to secure the same outcome.
If you want a better deal on your mortgage, there are basically two options:
1. Call your bank and ask them to match the new rate, or
2. Contact your broker and vote with your feet.
Although the first option is commonly recommended, lenders are not always so obliging when it comes to rate-matching to get you a more affordable mortgage.
It can be disheartening to see your bank offer new customers a lower rate to the one you currently have.
Lenders regularly try to ‘win’ new customers by offering low rates. It is a great acquisition strategy.
If your lender refuses to match your current rate to this new offer, you can always contact a broker and refinance with a lender who is hungry to win your business.
Mortgage brokers have access to a panel of multiple lenders, and this creates competition amongst lenders. Mortgage brokers are also able to offer you a more in-depth and customised level of service. This can allow them to find their customers a mortgage product that may suit their current needs, wants and circumstances.
Contact us at Wyze Finance to review your home loan.
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. All loan applications are subject to lenders terms and conditions, and eligibility criteria. Lender fees and charges will apply.