Home loans customers 'should negotiate for a lower rate'

Wednesday 20 July 2011

Article by Mozo

Prospective home loans customers should consider negotiating for a better rate when applying for a mortgage, an expert has claimed.

Home loans customers 'should negotiate for a lower rate'

Otto Dargan, director of Home Loan Experts, told YourMortgage magazine that those who are borrowing less than 80 per cent of the value of the property should push for the best deal possible.

He noted that those in certain professions may even be able to use their job as leverage to persuade lenders to reduce rates.

"The banks actually monitor the default rate of particular professions and then use this data to tweak their lending policies," he said.

For example, doctors, nurses and teachers are known to be consistently good at repaying their home loans, which means those new to the housing market in these sectors could find they get better interest rates, Mr Dargan suggested.

Last month, managing director of Smartline Personal Mortgage Advisers Chris Acret told the Hills Shire Times that those who already have home loans should compare their deal with others and consider negotiating better rates.

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