How to negotiate a better deal on your next home loan

How to negotiate a better deal on your next home loan

Last updated: 04 April 2018

Are you looking for a better deal on a home loan but you’re not sure where to start? Well, you’re in luck! The Credit Savvy team have compiled a few tips to help you negotiate your next home loan.


1. Be prepared and do your research

What rate are you currently being charged? What rates are available in the market? Do you need a basic mortgage or one with all the bells and whistles? Knowledge is power and our home loan comparison service is a good place to start comparing offers. It’s a lot easier to ask your lender to match a lower rate when you come prepared, which brings us to our next tip…


2. Just ask

You’ll never know if you don’t ask! You have nothing to lose by asking your lender for a lower interest rate, less fees, or more features. Ask them to match or beat an offer that you’ve found at another lender and make it clear that you’re willing to switch if they can’t.


3. Switch lenders

Many people think it’s too hard and time consuming to switch lenders, but that little bit of effort could turn into big savings.

Let’s say that you currently have a $400,000 home loan and an interest rate of 4.50% p.a. over a 30 year term. If you could cut just 0.50% p.a. off your rate, your repayments would decrease from $2,027 to $1,910 per month. That’s a difference of $117 per month. While that may not seem like much, over 30 years, you could potentially save up to $42,149 on your loan! Check out our home loan comparison calculator to do the sums on your loan.

Don’t forget that there can be costs associated with switching lenders, so make sure that these costs don’t outweigh the benefits.


4. Talk to a mortgage broker

If it all seems a little too hard to do on your own, you can get in touch with a mortgage broker. A mortgage broker can help you cut through the jargon, find a loan that suits your particular circumstances, and negotiate with potential lenders on your behalf. If you’d like to get in touch with an eChoice mortgage expert, click here to organise a free appointment.


Keen to learn more about home loans? Check out our Learning Hub for more articles!