With official interest rates trending downward, shrewd mortgage holders may take the opportunity to call their lender to ask for a better deal.
But when even a small interest rate reduction means potential savings of thousands of dollars, is a simple phone call really enough to get you there?
In 2019, ‘your interest rate should have a three in front of it’, is common advice for home owners considering the competitiveness of their loan settings.
But while a number of lenders offer lower rates to new customers, it’s not always so simple for existing customers to secure the same outcome.
If people want a better deal on their mortgage, there are basically two options:
- Call your bank and ask them to match the new rate, or
- Contact your broker and vote with your feet.
And although the first option is commonly recommended, lenders aren’t always so obliging when it comes to rate-matching to get you a more affordable mortgage.
As an existing client, it can be disheartening to see your bank offer new customers a lower rate to the one you currently have.
Lenders regularly try to ‘win’ new customers by offering low rates. It is a great acquisition strategy.
But if they refuse to match your current rate to this new offer, you can always contact a broker and refinance with a lender who is hungry to win your business.
Mortgage brokers, on average, have access to a panel of 30 lenders and this creates competition amongst lenders. Mortgage brokers are also in a position to offer you a more in-depth and customised level of service. This can allow them to find their customers a mortgage product that may suit their current needs, wants and circumstances.
If you’d like to have an obligation free chat regarding your situation, I invite you to connect with me.
Cairns Mortgage Broker – Jason Thomson is a Mortgage Adviser and Finance Broker based in Cairns with clients all around Australia. Client reviews featured on his website prove that Jason is a trusted industry professional, facilitating great outcomes for his clients. Using his wealth of experience in financial services, he thrives on delivering superior service. Jason is very approachable and is always looking for new clients to help in the often confusing world of finance and property. Offering a no fee service, you’ve got nothing to lose by having an obligation free chat with Jason today.