10 Jul Can one call secure you a lower interest rate?
With official interest rates trending downward, 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 2019, ‘your interest rate should have a three in front of it’, is common advice for home owners considering the competitiveness of their loan settings.
But while a number of lenders offer lower rates to new customers, it’s not always so simple for existing customers to secure the same outcome.
Paul Fox , our Senior Finance Broker, says there are two options if you want a better deal on your mortgage:
- Call your bank and ask them to match the new rate, or
- Contact your broker and vote with your feet.
And although the first option is usually the easiest and commonly recommended, many mortgage holders find that lenders aren’t always so obliging when it comes to rate-matching to get you a more competitive rate.
“Being an existing client and not getting the same low rate offers as new customers can be very disappointing.
“Lenders use low rate offers to ‘win’ new customers, which is a great strategy if you are in the market to switch, but if you are an existing customer and your 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.
“Whichever option you choose, make the call to either your current lender and ask, or call 1300 ASK FOX and let us do the leg work for you.”
As an accredited finance and mortgage broker we have access to a panel of over 30 lenders and this gives us access to a wide range of products, some at very competitive rates. We are also in a position to offer you a more in-depth and customised level of service, allowing us to find you a mortgage product that may suit your current needs, wants and circumstances.