How to haggle with your mortgage lender and save thousands of dollars.
ustralian borrowers are refinancing at record rates as mortgage repayments race higher, pushing homeowners to the brink. However, experts are reminding borrowers of the power of a phone call with their current lender before they jump ship.
“In 2022 we did 489 [home loan] reviews for clients, and the average discount we negotiated was 0.26 per cent, which worked out to be $101.65 per month, per customer,” says Dixon. Ideally, you will you’ll have two or three rates from other lenders that would apply to your loan, says RateCity research director Sally Tindall. When it comes to the phone call, don’t be afraid to name-drop them, she says. It shows your lender you’re serious and prepared to move.Your loan-to-value ratio simply reflects how much of the property you’ve paid off, and is given as a percentage. For example, someone who has paid off 20 per cent of their mortgage will have an LVR of 80 per cent.
If you found your property was worth $1 million and you had a loan balance of $700,000, then you’d know that you have an LVR of 70 per cent.Glen James, former financial adviser and host of the My Millennial Money podcast, had a rate review in late 2022, and under his new interest rates, he will be saving $380 a month across his two mortgages.He generally uses a mortgage broker, but for the purposes of his podcast he wanted to see what it was like negotiating with his two lenders directly.
“On a $1 million debt, this translates into more than $4000 in extra interest over the next year alone.” “As a result, the banks are in the mood to negotiate, particularly if they think you might be a flight risk,” she says.Once you’re speaking to a human, it’s a matter of telling them you’re reviewing your home loan interest rates and are considering refinancing.
Is there anything that you guys can do because I’d rather stay with you, as opposed to complete a new application and change lenders. You can also ask for one. This is particularly useful if your bank hasn’t lowered your rate as much as you were hoping.“Once your lender comes to you with an offer, you don’t normally have a counter, but it’s definitely worth trying,” says Dixon.
That’s when – if you have a broker – you go to them and ask if they can put something on their letterhead with your name and details, listing a couple of other lenders available.Glen James says you can save hundreds by chatting to your bank.If that doesn’t work, you should be prepared to move, the experts agree.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX LIVE: Australian shares to edge higher, Wall Street pares lossesAustralian shares set with a muted start; Wall Street pare early losses; oil rallies 1 per cent; Bitcoin above $US21,000; $A dips to US69.16¢.
Read more »
Manchester City v Tottenham: Premier League – liveMinute-by-minute report: Join Scott Murray for updates as Manchester City and Spurs look to bounce back from derby defeats
Read more »
Residents fed up after man allegedly damages 43 cars during 30-minute rampage in Melbourne's eastResidents living on a Melbourne street have been left with a hefty repair bill after a man allegedly damaged 43 cars in the space of 30 minutes late last year. 9News
Read more »
Residents fed up after man allegedly damages 43 cars during 30-minute rampage in Melbourne's eastResidents living on a Melbourne street have been left with a hefty repair bill after a man allegedly damaged 43 cars in the space of 30 minutes late last year. 9News
Read more »
New footage of 'friendly' Sydney woman the day after she vanished eight weeks agoThere are grave concerns for a young woman who vanished from BossleyPark almost two months ago. Her family, and police, tonight making a desperate plea, and releasing chilling footage, in a bid to find answers. tiffgenders 9News MORE:
Read more »
Transfusion review – paint-by-numbers drama could be written by AIDecent acting from Sam Worthington and Phoebe Tonkin can’t save this moody action flick from a lacklustre script, which contains no surprises
Read more »