If your interest rate doesn’t start with a three you could be losing out. That’s according to a money expert following a survey conducted in 2017 by Finder.com.au, that reported more than half of all homeowners in Australia failed to ask for a better deal on their home loan rate. By simply asking the question most homeowners fail to ask, you could shave thousands of dollars off your home loan repayments.
According to a survey undertaken during 2017 by comparison website Finder.com.au, only one in three Australians have successfully negotiated a better home loan interest rate.
Survey results showed that out of the 1,286 homeowners interviewed, just 43 per cent had attempted to get a discount, while 45 per cent didn’t know you could ask for a discount or hadn’t ever asked the question.
Money expert at Finder.com.au, Bessie Hassan, says mortgage holders need to embrace negotiation, and not settle for the advertised rate.
“Have the confidence to ask for a lower rate, and reap the reward that will come with making smaller mortgage repayments. If you don’t ask, you don’t get,” she says.
Ms. Hassan added that it’s not uncommon for lenders to discount rates by 0.2 to 0.25 per cent right now, and even the smallest discount – just 0.2 per cent – could save you $20,000 over the course of an average mortgage.
A “set and forget” approach
Getting a mortgage can be a complex and stressful process, and many Australian homeowners simply adopt a “set and forget” attitude when it comes to their home loan, believing it’s just too hard to negotiate with their lender and that they’re better off sticking with their existing home loan rate rather than trying to change things.
But it’s vital homeowners revisit their home loan at least once a year to ensure their interest rate is competitive when compared to the market. Home loan features are equally important, with the ability to make additional repayments or the use of an offset account having a significant impact on the life of your home loan.
An annual home loan review
If you haven’t booked an annual home loan review, you could be missing out. As well as shopping around for the best deal, a Mortgage Express broker can negotiate with a lender on your behalf to ensure you’re getting the most favourable interest rate and loan features. Get in touch with one of our brokers find out more.
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