Is one phone call really all it takes to secure a lower home loan rate?
With official interest rates trending downward, shrewd mortgage holders may take the opportunity to call their lender to ask for a better deal and a better home loan rate. Even a small interest rate reduction means potential savings of thousands of dollars. However, is a simple phone call really enough to get you there?
Does Your Rate Start With A 2?
‘Your interest rate should have a two in front of it’. This has been common advice for home owners considering the competitiveness of their loan. But while a number of lenders offer a lower home loan rate to new customers, it’s not always so simple for existing customers to secure the same outcome.
If people want a better or lower home loan rate, there are basically two options:
- 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 commonly recommended, lenders aren’t always so obliging when it comes to rate-matching to get you a more affordable mortgage.
As an existing client, 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.
But, if they refuse 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.
Dennis Smallwood has access to a panel of 30 lenders. This creates competition amongst lenders. He is also in a position to offer you a more in-depth and customised level of service. This allows him to find customers a mortgage product that may suit their current needs, wants and circumstances.
The Home Loan Comparison Co. compares home loans from a much wider variety of banks than most people have time to consider, and we find the loan that suits your goals.
We are experienced, knowledgeable and dedicated to building ongoing relationships to keep on providing personal and valuable service that is rarely experienced when dealing with the banks.