How & what to negotiate with bank

Viewing 3 posts - 1 through 3 (of 3 total)

Rellie
Member
@rellie
Join Date: 2003
Post Count: 28
January 27, 2009 - 12:38 pm
Hi
My partner & I are looking to buy our first home together (but we're not first home buyers) and I want to get the best deal possible.
Does anyone have any tips on how I should negotiate with the bank & what I can negotiate with them ie. can I negotiate rates, fees, LMI etc
People's experience and knowledge would be much appreciated.
Thanks
Narelle
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
January 28, 2009 - 10:34 am
Hi narelle,
You can go and visit 101 lenders and try and see what they can offer or you can contact an independant mortgage broker and get them to do the worl for you.
One issue in todays climate is that lenders are not in the mood for negotiating on fees or interest rates as their margins have been squeezed and raising funding has got harder and more expensive.
A good broker can take a lot of the hassle out of the process for you and if they are experienced can help you In structuring the loan which is something no lender will do for you.
Richard Taylor | Australia's leading private lender
duckster
Participant
@duckster
Join Date: 2004
Post Count: 1,674
January 28, 2009 - 10:49 am
Narelle,
Mortgage insurance is done by a third party to the banks and there are two major insurers .It is based on the LVR loan to value ratio as to how much LMI you will need to pay. Unless you go to a non-bank provider who may self insure but usually the interest rate is higher.
When comparing interest rates you have to look at the real cost of interest when comparing loans – banks have to provide a comparison rate. (this rate takes into account the fees charged)
See if you can get a professional pack. Ask them if they will provide one.
Ask if you can get a discounted interest rate,
Ask them what early exit fees will be incurred.
Ask what the establishment charges will be.
Ask them what extra features are attached- offset , EFT cards, redraw, extra repayment, fixed term or variable.
Another trap you may need to know about is what value the banks valuer will come up with on the house you are buying !
You may find using a mortgage broker useful for being able to check many lenders and comparing rates and fees and features and saving you racing around (make sure broker's fee is provided by bank rather than by you)