If you feel like you’ll never be done paying off your home loan, you might need to negotiate for a lower interest rate. It would be best if you looked over your home loan every so often to ensure you always have the best rate.
Please read our 4 steps for negotiating a lower interest rate on your home loan.
- Ask for the same rate as new customers get. Feel free to call your lender and ask for a better deal. Talk with confidence and ask for the same rate as new customers. Lenders are willing to work with you to keep you as a customer as long as you are in a strong position and haven’t missed payments or anything else. If you have good credit and have been paying off your home loan on time for the past 10 years, you might be in an excellent position to negotiate. If you talk to your lender about the rate, you might be surprised at how quickly you can get them to lower your interest rate.
- Do some research. Before you talk to your lender about lowering your interest rate, shop around and see the rates other lenders offer for your situation. Using our online home loan platform, you can find out if a better rate is available in minutes. Showing your lender that there are lower rates can be a great bargaining chip when you want them to lower your interest rate. You should look around and see what other lenders can offer you. Your lender may not be willing to budge, and you may decide to refinance with someone else. This brings us to the next step…..
- Get ready to walk! It would be best if you were always prepared to avoid negotiation. Be reassured by the refinancing process if your lender will give you a reasonable rate. Switching lenders is a straightforward process that can sometimes be finished in as little as a week. So, if you want to lower your interest rate, you should be ready to switch lenders.
- Lastly, make sure you are a good borrower. Make yourself the kind of borrower banks like to work with, and you’ll give yourself the best chance of getting that low rate. Before they figure out your interest rate, lenders look for a few key things.
Lenders want people who have the following:
- A low LVR – If your LVR is over 80%, it may be hard to negotiate
- Good credit score
- No late payments or missed payments
- Having stable employment
With these 4 steps, you should get a better home loan interest rate deal!
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