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According to new research by finder.com.au, Australian mortgage holders are potentially missing out on thousands of dollars in savings because they’re not negotiating a lower rate.
Finder.com.au conducted a survey with 2,033 participants and found that almost two-thirds (65 per cent) of them hadn’t taken the opportunity to ask for a better rate on their loan, even though a massive 82 per cent of borrowers who requested a better rate, got one.
Out of those surveyed, almost one-fifth (18 per cent) said they had switched financial institutions to obtain a better rate.
The official cash rate in Australia is currently at the lowest it has been in history and there are some exceptionally competitive mortgage rates available, but it does pay to shop around for the best deal and negotiate with your current provider.
With so many people making huge savings by calling up their financial institutions and simply asking for a better rate, it doesn’t hurt to at least try.
A useful tip to help you make a case of why you think your rate should be lowered is to present to your lender what their competitors are offering. A lot of lenders would prefer to offer a better rate than risk losing a customer.
But, if your lender won’t budge then it might be time to take a serious look at your other home loan options.
If you plan on making the switch, don’t forget to take into account any exit and entry fees and assess whether or not switching home loans will benefit you long term.
If you’re considering getting a new home loan and would like to discuss your home loan options then have a chat to the team at Professionals Finance to find the best finance deal to meet your borrowing needs.