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A new study reveals that one in two Australians consider themselves to be good at driving a competitive deal. Yet, less than 50 percent have bothered to negotiate a better rate on their home loan!

 
It is possible to negotiate a better rate on your home loan
 

Lender advertised rates in the market have remained around the five percent mark in the past few months. However, home loan comparison websites such as HashChing are offering rates as low as 3.56 percent per annum. Any savvy home borrower who has reviewed the ongoing deals in the market should be prompted by this vast difference in rates to negotiate a better deal on their home loan.


Being lazy is costing you money!

If you are paying interest at a rate that is more than four percent or so, you could be overpaying a considerable amount on your mortgage! But the good news is you no longer need to overpay your lender. Thanks to the competition in the market, borrowers have more negotiating power than ever before. If you have been a good borrower with a steady repayment history, your bank does not want to lose you to the competition! Knowing this simple fact can empower borrowers (i.e. you) to negotiate better with their lenders.

It is also important to know what is being offered in the market before you approach your lender. Take Mr Shah’s case, who approached HashChing after his initial request for a lower rate was turned down by his own bank because he did not know what the other lenders in the market were offering. Finally, he contacted HashChing to negotiate a deal on his behalf and is currently saving $200 per month on his mortgage with the same bank.

Mr Shah advises home borrowers to do their homework. “You should know what your current interest rate is and regularly research online for better rates,” he says.

Mr Shah is correct. Armed with the knowledge of the ongoing rates in the market, you will find yourself in a better position to negotiate a lower rate. Besides, it is also vital to ensure your loan is set up properly. Due to change in regulations, interest rates on investment loans and interest-only loans have hiked. However, for owner occupiers, competitive home loan rates continue to be on offer from a plethora of lenders. It is simply a matter of comparing home loan deals and fixing an appointment with your lender.

Don’t worry. Comparing home loan deals is easy.

To start, ask a lender for the key facts sheet that provides important information such as fees, charges, comparison rate, etc. You could use the comparison rate calculator to determine the total annual cost of a mortgage. Besides, you can estimate your monthly repayments with this calculator by plugging in different interest rates, fees and charges into it.

HashChing also offers you broker pre-negotiated home loan deals that you can compare online. To ensure transparency, each home loan deal on HashChing displays basic information such as interest rate, comparison rate, application fee, ongoing fee and other features to help you determine the real cost of a mortgage, enabling you to make an informed choice. In case you have a query, you could always ‘Ask a Broker’ to answer it online by providing minimal information, and at no cost to you!

Do you think it could get easier than this to save money on your home loan? Act now to save more money and own your home sooner!

 

By Vidhu Bajaj,
HashChing Content Writer

 

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HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.