3 must do's to get a better home loan rate

TL;DR

Learn three steps to secure a better home loan rate: review your current loan, research current offers, and renegotiate with your bank.

Transcript

g'day and welcome to this week's video my name is robert gowdy from consortium private wealth and we're going to do a very quick video on chasing a decent rate on your home loan and three things that you should do to make sure that you get that now i'm not talking about the best rate that's out there but definitely a better rate and what the banks ... Read More

Key Insights

• ☠️ People's lack of awareness regarding their current home loan rate allows banks to avoid providing better rates.
• ☠️ Researching current home loan offers online, considering both interest and comparison rates, is crucial in securing a better rate.
• 🏦 Renegotiating with your bank is often a simpler alternative to refinancing, but be prepared to switch banks if necessary.

Questions & Answers

Q: Why do banks rely on customers' laziness to keep them on higher home loan rates?

Banks count on customers not taking the time to review their current rates, allowing them to avoid offering a better rate without customer prompting. The lack of action often stems from the paperwork and hassle associated with refinancing.

Q: What factors should I consider when researching current home loan offers?

Along with interest rates, it's crucial to also consider the comparison rate, which includes all loan costs. This ensures that you're not only getting a lower interest rate but also overall cheaper loan terms.

Q: Is it possible to renegotiate my current home loan without refinancing?

Yes, reaching out to your bank and discussing your desire for a better rate is often a simpler and less time-consuming option than refinancing. Be prepared to negotiate and potentially provide evidence of better rates available in the market.

Q: Should I be willing to switch banks if my current one doesn't offer a better rate?

If your bank refuses to provide a better rate even after negotiation, it may be time to consider refinancing. Many refinancing deals offer attractive rates and incentives, especially if you have a stable job, good income, and equity in your loan.

Summary & Key Takeaways

• Many people are unaware of their current home loan rate, which banks rely on to avoid customer action.

• Research current offers online, considering both interest rates and comparison rates.

• Renegotiate with your bank to secure a better rate or be prepared to refinance if necessary.