Last Updated: 27th December, 2018

4 Ways To Slash Your Home Loan Rate

Published by Otto Dargan on August 28, 2016

4 ways to slash your home loan rate infographic

4 Ways To Slash Your Home Loan Rate (And Save Thousands)

People love a good bargain when it comes to clothes and gadgets but what about your home loan? Even with a tiny 0.30% discount you can save more than $30,000 in repayments!

Do we have your attention now? Good!

4 magic tricks to get an interest rate discount

Wait, what? Do you think this is Harry Potter? Sorry, there’s no magic involved – all you need is some good, old-fashioned bargaining and gumption.

Here’s something you probably didn’t know: banks usually have discounted rates for new clients. Forget about rewarding loyal customers, once they have your signature on the dotted line, banks are already chasing after new borrowers.

An important strategy is to speak to your bank every year or so and keep up to date with the latest deals and interest rates. When you see a good deal, switch your loan and shave a few points off your interest rate. Some banks may not be very helpful so you may have to be a bit more aggressive about it. If they don’t listen to you, threaten to refinance! That should get their attention. MWAHAHAHA!

Remember, your bank isn’t the only one in Australia. If you aren’t happy with yours, then look for another. Nothing personal, it’s just business after all. Check out the best interest rates on offer from our panel of over 40 lenders. Can your bank do better?

How much money can I really save?

Let’s suppose that you borrowed $500,000 at an interest rate of 5.00%. If we’re able to get you a 0.30% interest rate discount, either by negotiating on your current mortgage or refinancing, you could save up to $32,730 in interest payments. Better yet, if you continued to make your old repayments at the new rate you could save up to a whopping $68,240!

Wait, there are more discounts available!

If you’ve always thought about getting into property investment then now is the right time. The more you borrow, the more discounts and waivers you may be eligible for.

Specifically, our mortgage brokers can negotiate to have the cost of lenders mortgage insurance (LMI) waived completely if you are a doctor, engineer, lawyer or accountant. For other types of professionals, we may still be able to get you a discount on your LMI fee as long as:

  • You are buying a property
  • You have 5% in genuine savings
  • Your LVR is less than 95%
  • You have been working for at least six months
  • Your credit history is perfect
  • Your loan amount is less than $800,000

Don’t have the time to talk to every bank in Australia? Call us and save thousands on your home loan! Our team of expert brokers know the policies of over 40 lenders in Australia and can help you get the best interest rate. Call us on 1300 889 743 or fill in our FREE assessment form.