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?<\/p>\n
While a number of lenders offer lower rates to new customers, it\u2019s not always so simple for existing customers to secure the same outcome.<\/p>\n
If you want a better deal on your mortgage, there are basically three options:<\/p>\n
1. Call your bank and ask them to match the new rate, or
\n2. Call your broker and ask them to negotiate a new rate with your existing bank on your behalf, or
\n3. Ask your broker to assess your options with other lenders and vote with your feet.<\/p>\n
And although the first option is commonly recommended, lenders aren\u2019t always so obliging when it comes to rate-matching to get you a more affordable mortgage.<\/p>\n
\u201cAs an existing client, it can be disheartening to see your bank offer new customers a lower rate to the one you currently have.<\/p>\n
\u201cLenders regularly try to \u2018win\u2019 new customers by offering low rates. It is a great acquisition strategy.<\/p>\n
\u201cBut 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.\u201d<\/p>\n
Mortgage brokers, on average, have access to a panel of 34 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.<\/p>\n