There is good news for borrowers despite the fact that the Reserve Bank has decided to leave rates where they are for another month. Yes, interest rates remain at record lows but that doesn’t mean that you should just sit back and wait for your bank to make all the moves.
With a hottening property market, getting the best deal on your home loan has become even more important. And the good news is that right now, the banks are very keen for your business. You’ve just got to be up for some old fashioned haggling.
The best discounts are on offer if you’ve got at least 20% deposit (or equity) and looking to borrow $500,000 or more. But even on smaller loan amounts the banks are offering package discounts of up to 0.90%.
If you’re prepared to haggle hard you can get better discounts than the published discounts.
How to haggle a home loan – DIY style:
1. Do your research. Compare home loans on Mozo so that you know what rates you can get elsewhere and tell the lender they’ll have to do better to get your business.
2. Don’t accept the first offer. Banks tend to reserve their biggest discounts for the toughest customers so when quoted an initial discount ask if that is the best they can do.
3. Use your bargaining power. Offer to bring other business to the bank such as your life insurance, credit card or financial planning to the bank.
4. Don’t limit yourself to rate haggling. Push for discounts or waivers on application and ongoing fees or for extra features added for free.
5. Prepare to bluff. Banks need to know you’re serious to give you the best deal so be prepared to bluff about walking away.
How to haggle a home loan – Mozo Style.
We understand that haggling isn’t for everyone but this shouldn’t mean you end up with a bad home loan deal. Our team of expert home loan negotiators can help you to save on your home loan by negotiating with lenders on your behalf. Call us on 13 MOZO or fill out our simple enquiry form.