When you’re paying your bank’s standard advertised interest rate, you are probably paying too much for your home loan. Banks and other lenders will offer a discount against the standard interest rate to attract new business and to keep current customers from leaving them.
The sooner you can set up a meeting with your mortgage brokers in Rockingham, then the faster you will be able to find out if you can get a better deal on your home loan.
How Much Discount Can You Claim?
Just a few years ago, it was relatively easy to claim as much as 0.5% discount off the loan to enhance the deal for you. These days, that discount can easily reach 1% as banks compete with each other to maintain good business on their books.
Some of the newer lenders offer rates that are below the bank’s standard rates anyway, so those cut-price deals are forcing a large element of discounting amongst many home loan companies. You may not be able to achieve a discount from the rate from one of these newer lenders because they are always offering the best deal that is possible, but you can always ask.
You May Not Need to Remortgage
When you discuss your mortgage arrangements with your mortgage brokers in Rockingham, you will be able to find out what deals are available across the marketplace and compare it to your current home loan.
This might mean that you should benefit greatly by changing your lender, but there are always costs to moving from one company to another and you might be able to save the cost of remortgaging by discussing discounts with your current lender and seeing if you can obtain a better deal.
Most banks and other lenders offer their mortgage rate at a certain amount above the standard cash rate and this difference has increased over recent years, which means that all banks have a little room for manoeuvre in the area of discounting.
While you shouldn’t threat to leave them for another lender in your first discussion, you might have to get to that stage to achieve the largest discount that is possible. Only when they believe that you might actually be looking to move to another lender, will they offer you their best possible deal to encourage you to stay, because any higher interest rate figure above the offer makes them more profits.
You will only be able to secure a reasonable discount if you can prove a great track record in paying your mortgage correctly and on time every month. They will only offer the biggest possible discounts to customers who are perfect with their repayments; the ones the banks want to stay.
In some areas, up to a third of housing loans are being refinanced for a better deal.
You will learn how you should negotiate with your lender, from a discussion with your mortgage brokers in Baldivis, because they are professionals who are regularly dealing with lenders every single day of the week.