I tested out a theory today. I called my bank this morning to ask for a better interest rate for my home loan. I’m on a pretty good rate already (given I am a broker, I should be!). But I simply just asked the question. It was that simple. And the result? I’ve saved $600 per annum or $50 per month on my mortgage. Not exactly sheep stations, but It’s not often you make $600 over one 20 minute phone call.
There is so much talk about banks and interest rates right now (isn’t there always!) Depending on the type of home loan you have and the bank you are with, you would definitely have seen some changes to your rate in the last few months. Some have moved down but mostly they’ve gone up!
So what can you do about it? Well the best way to get a better rate is to test the market. See what’s out there. Talk to a broker (I can recommend a good one!). But before you do that, there is a simpler solution.
Call your bank – take 20 minutes of your time and simply tell them you’ll leave if they don’t improve your rate. It’s that simple and it works. Some banks even have special teams to look after these types of enquiries.
Everyone’s circumstances are different so it will have varying degrees of success but I can safely say that (a) if you have a variable rate and (b) You haven’t checked your rate in two years, it will be worth the phone call. Especially if you are with one of the big four banks.
If you’re curious of what’s available in the market before you call the bank, call me and I’ll look into what you could get. It can help to tell them you are looking at a specific rate from a competitor. If the bank won’t budge enough, then you can always take the next step and refinance. But this article isn’t about me – it’s about you saving money! So make the call and see how you go!