With official interest rates at a record low, 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 homeowners 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 their bank and ask them to match the new rate, or
- Contact a broker to do an interest rate comparison.
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.
At Dream Catchers Lending, we have access to a panel of 30+ lenders and this creates competition amongst lenders. We are also in a position to offer you a more in-depth and customized level of service. This allows us to provide you the right mortgage products that suit your circumstances.