Hi Everyone,
I was just wondering if anyone out there has had experience negotiating with banks to get a better interest rate. At the moment I have 3 home loan all with the one bank and would like to fix them but I don’t like the rates on offer. Since I have been with them for a while and owe quite a lot I thought they might be willing to do a better deal with me, but I’m just not sure how to go about it.
Any ideas?
Thanks.
Thanks,
LuckyoneThe best way to go is to find a better fixed rate out there – http://www.cannex.com.au and then threaten to refinance to that institution unless they match it. I have used this tactic successfully for clients in the past.
Of course you need to be prepared to move if they say no ….
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
The above recommendation is your best option.
It really should not matter how long you have been with the bank – although loyalty plays its part, a better rate of interest can be more important.
The level of debt is also inconsequential in most circumstances because banks/lenders are reliant on securing new customers and holding as much [secure] debt as possible.
— Michael
If you have a $1 million in loans, then they may offer you a small discount (ire more than the professional package). But usually they will not give you anything untill you threated to move your loans to another bank.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Cool, thanks for that. I will look into threatening to leave, might have to get a valuation done first to make sure we won’t have to pay mortgage insurance though.
Thanks for all your advice.
Thanks,
LuckyoneHey luckyone,
Pick a broker, any broker..
There’s still 1 or 2 lenders who’ll give you a discount on their fixed rates on certain loan levels, but it’s nothing to write home about – around 0.1 or so off advertised rates. If you intend fixing it all find out what you can get elsewhere and then have the unless-you-match/better-this-I’m-outta-here talk with your lender. Otherwise you could consider combining a fixed rate + intro fixed rate rolling to pro discount on a refinance – keeps some flexibilty in case your crystal ball is wrong re fixing the lot..Find a broker you can trust to do the homework, then check the variables – ie rate is as of approval or settlement, rate lock options/costs, etc – to ensure what you want is what you get.
Cheers
theloanarranger
Have to say it doesn’t always work though.
I have > $500K worth of loans with 1 bank and I threatened to leave if they don’t match a competitor’s rate.
But they took me up on it and said there was no way they could match it.
So I guess the moral of the story is that you have to be able to carry out your threats or else they’ll just be empty ones.
Bennido,
The next step is to admit that moving wont be without cost so perhaps they could give you what they can and you will consider staying after you do the sums…..
[happy3]
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
That’s a good idea too. Thanks Simon! I just want to be able to go in with a plan of what to say.
Thanks,
Luckyone… talk to the bank, and work out a deal, the more personal investment loans you bring in, ask for the interest rate to be discounted a little more each time… if they cant do that… get them to give you more incentives and extras…
… believe, threatening will only go so far… what happens when you want another loan, and another loan, or you want to reuse an existing loan your exiting….
… so far being co-operative with the bank, have been able to get huge discounted interest rates…. and majority of all there, products and services… (for a long time now, they have looked at each loan as a transaction, not an income test…**no more need for payslips**)
Cheers,
sisI have personal bankers in NZ and they usually give me discounts if I ask them nicely.
Yeah, not always going to get interest rates, but I have had conveyancing fees paid for me in part, discounted insurance, free valuations, all without being on a professional package. I guess part of it is striking a bank person who will listen and try to help, the other is all the other things here… threatening to move, how much bank sees you as valuable etc etc etc.
CD
CastleDreamer
“+CF properties in NZ available now, email CastleDreamer or Minimogul”
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