With many homeowners and investors facing the challenges involved in coming to the end of well-priced fixed rates throughout 2023, we thought it could be worth while sharing some thoughts on ways to assist in exploring the best possible rates available for you.
If you managed to get a great deal initially, do not expect it to remain as competitive as time goes by. There will always come a time when your current home-loan product would be overshadowed by newer mortgage offerings in the market, especially in terms of rates.
The lending market is always rife with new players who are willing to go the extra mile to offer lower rates and attractive features to lure in potential borrowers. In this case, you might want to talk to your lender about discounts to make sure your home-loan deal keeps up with the ever-changing lending market and best suits your needs going forward.
Find Out What Your Bank Is Offering New Customers
Lenders regularly offer something new to keep up with their rivals and to make sure that they woo potential customers. It is highly likely for your lender to offer new rates for new customers. To gain the attention of potential clients, lenders typically offer lower rates to new customers than those being paid by existing borrowers. They even throw in an added home-loan feature to hook interested borrowers.
The best way to find out what lenders are offering their new customers is by looking at their websites or by going to their nearest branch, if they have any. You can take note of these offers and give your lender a call, ask them why you are not being offered the same deal if you have been a loyal customer.
Know Your Odds At The Negotiating Table
Of course, the number-one requirement you have to meet to prove your loyalty is to show that you are consistent — you never missed payments, you are prompt in answering queries, and you strictly follow the rules set by your lender. If you tick all of these boxes, your chances of scoring an interest-rate discount skyrockets.
Additionally you are more likel to be considered an ideal borrower if you are an owner-occupier and you already own at least 20% of your property. It is also a plus if you are employed in a full-time position. Your lender will likely be more open to talking about interest-rate discounts if you are paying principal and interest.
Check What Other Lenders Have To Offer
There is nothing wrong with checking out other home-loan offers in the market. This way, you know where your current mortgage deal stands. Researching what your lender's competitors currently offer will give you an idea how much you are missing out by not negotiating for a better deal. Knowing what others offer gives you an advantage at the negotiating table — you would know how much you should demand and how much you could likely get.
Reach Out To Your Broker
You would not go to war without reinforcements — mortgage brokers would be able to help you find the most competitive loans in the market. If all else fails and your lender does not seem interested in keeping you as a client, chat with a broker and see your options.
By speaking to a broker, you will have access to home-loan deals that might not be advertised to the general public. These finance professionals have access to several lenders and can assess which mortgage offer better suits your financial needs and demands.