Home loans customers 'should negotiate with their bank'

By Mozo ·

Aussies who compare home loans online and discover they are not satisfied with their existing deal should consider talking to their bank, the Australian Bankers' Association (ABA) has stated.

Steven Munchenburg, chief executive of the organisation, observed that people "have a lot of negotiating power" in the current climate.

He explained that with demand for credit at a low point, borrowers are often offered discounts.

"[These] can shave up to one percent off the [home loan] interest rate saving thousands of dollars over the full term of the loan," he asserted.

The ABA recommended that prospective home loan customers and those who already have a policy consider features such as whether or not it allows frequent repayments and whether it is a fixed or variable interest rate.

Last month, executive manager of personal lending at Suncorp Bank Tony Meredith told National Features that financially savvy Aussies should pay a little more than the minimum each month to reduce the overall price of their property.

Have a question about home loans? Ask the money gurus at Mozo AnswersADNFCR-1761-ID-800661165-ADNFCR