To start the spring property season with a bang I put myself in the shoes of a first home buyer, refinancer and investor to see just how much a little haggling could take off a BIG 4 home loan.
After a week on the phones, the results of my secret shopping exercise have been revealed and it’s great news for borrowers. In each of the three scenarios I was able to negotiate impressive discounts. For instance as a refinancer looking for a $500k home loan I haggled 1.16% off the standard variable rate loan, with a $1,000 cash back offer thrown in for good measure.
With interest rates at an all time low, banks are competing for your business and are willing to give generous discounts to win a customer like you. So hone your home loan negotiating skills by following some of my top tips for haggling like a pro:
Do some recon work. Search the home loan market to find out what other providers are offering and ask your financial provider to match it.
Dangle a carrot in front of the provider. Let the lender know you’re willing to move across your other banking products like your credit cards and transaction accounts for the right interest rate.
Consider haggling on fees. The interest rate isn’t the only feature of a home loan that could end up costing you big bucks, so if you can’t get a price discount on the loan rate try haggling on the application and ongoing fees, which could save you thousands of dollars over the life of the loan.
Show that you’re ready to move. By letting the lender know you’re serious about signing on the dotted line, they will be more inclined to offer you the interest rate you want.
If haggling isn’t your thing, there’s no reason you should miss out, especially when Mozo provides a free home loan negotiating service. So give me a call on 13 6696(MOZO) or fill out our quick home loan negotiator form below and I’ll haggle a top deal with the banks on your behalf.