Women In The Black

How To Negotiate A Better Deal On Your Home Loan

How To Negotiate A Better Deal On Your Home Loan

Interest rate is the backbone of a home loan. It is that very thing which ends up meaning all the difference in the world between smooth repayments you don’t even feel, or struggling to make ends meet.

This is why it is not only important to make sure you get the right deal to begin with, but to also keep following up with your current lender to see if you can negotiate a better deal.

Many homebuyers fail to realise that there is quite a lot you can achieve by simply seeking alternative options with your existing lender. It is well worth asking your lender if they can put forward any special offers to further strengthen your relationship. It is quite possible they might pull a special deal out of the hat for you.

Customers with a track record of on time payments have a higher chance of receiving these kinds of special offers from lenders. So it is important to neither miss nor delay any repayments. This will keep you in good standing with the bank and may attract interest rate reductions.

Here are 4 handy hints you can use to negotiate a better rate.

  1. Call your existing lender, if you’ve found an offer out in the market place, let them know about it, and see what they can do it match it.
  2. Multiple loans with different banks? Did you know that the more lending you have with one particular institution, the more you negotiating power you have to get a lower rate?
  3. Use comparison services available online to see what better deals are out there, don’t be shy to get in touch with them to see what they can do for you.
  4. Loyalty doesn’t pay, some people think by staying with the same lender means you’ve already got the best deal, it’s true, sometimes you love your bank manager, but what has or she done for you lately? Give them a call; sometimes the bank you’re currently with might be able to put you onto a cheaper product.

Looking around the market for better alternatives to your current deal and then taking this information back to your existing lender is always an effective method for securing a better deal out of them. It gives you bargaining power to imply that unless your current lender is able to match the deal offered to you by their competitors, you see no value in sticking around and suffering tougher repayments.

On most occasions you will find that negotiating process can be rewarding. However, there are many lenders out there who may not budge. Do not stress if this happens, you can use websites like http://www.switchmyloan.com.au which offers a free service that helps you compare your home loan, and if you give them a call, they may be able to negotiate with the bank on your behalf to save you thousands of dollars per year, and pay your home loan off quicker!

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