With official interest rates trending downward, 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 2021, ‘your interest rate should have a two 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.
Options for a customers:
A leading mortgage and finance broker says that if people want a better deal on their mortgage, 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.”
How can a Mortgage Broker help you ?
Mortgage brokers, on average, have access to a panel of 34 lenders and this creates competition amongst lenders. Mortgage brokers are also in a position 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.
Speak with one of our brokers to explore the options for you.
Feel free in getting touch with us – NO OBLIGATION and we will help where we can.
Nirosh Weerasinghe 0401 976 188
Chamila Suraweera 0402 927 220
Shane Cross 0421 427 272