Need help managing my home loan

Any general questions you might have in regards to loans and finance.
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Roman Bust
Posts: 8
Joined: Tue Jun 07, 2016 11:31 am

Need help managing my home loan

Post by Roman Bust »

Hi, it's almost been a year since my home loan was settled. I haven't had any contact at all with my broker (they are on holiday) and I'm just paying on the interest rate that was initially decided. I think my bank is offering a lower rate to the newer customers but I'm not sure how to ask for a better rate myself. Can anyone help me with this?

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Need help managing my home loan

Post by Otto Dargan »

Hi Roman Bust.

Welcome to the forums.

Although it's almost a year since your home loan settled, you can still potentially save a lot of time as well as money by managing your home loan properly.

Banks usually lower their interest rates in order to attract new clients but they don't mention this to their existing loyal customers. However, you may be able to negotiate your interest rate to what the bank is offering the new customers.

Please note that banks have a system to know if you loyal or not and this can prevent you from getting their best offer. Banks will aim to offer you the lowest possible discount that's just enough to make you stay, even if lower rates exist.

You may need to make it very clear that if they won't give you a lower interest rate then you'll be refinancing your home loan to another lender. You can do this by asking your bank to send you a discharge form so they know you're serious.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Roman Bust
Posts: 8
Joined: Tue Jun 07, 2016 11:31 am

Re: Need help managing my home loan

Post by Roman Bust »

Hi Otto,

I didn't realise that brokers actually can go beyond settlement. I'm saying this because my broker didn't contact me once my loan got settled and when I tried to contact him, I found out that he was on holiday. If I do indeed consider refinancing, what things should I be looking out for?

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Need help managing my home loan

Post by Otto Dargan »

Hi Roman Bust,

Before considering to refinance your home loan, make sure you figure out whether or not it will actually leave you better off. If you're only after a lower interest rate, you may get one but dislike other components of the new lender such as service or additional fees and costs.

You should also note that if you get declined for refinance then it will only add an unnecessary black mark to your credit file. If there's two or more credit enquiries recorded on your credit file in the last six months, it can make it difficult for you to borrow and reduce the number of lenders available.

We have a dedicated team of mortgage brokers who specialise in all post-settlement related queries and issues. We're also great at refinancing home loans or negotiating rates on behalf of our clients.

You can speak with one of our mortgage brokers by calling us on 1300 889 743. You can also complete our free assessment form and one of us will contact you instead.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Roman Bust
Posts: 8
Joined: Tue Jun 07, 2016 11:31 am

Re: Need help managing my home loan

Post by Roman Bust »

You guys seem to know your thing, and I'd really like to have a great post-settlement team watching out for me and my home loan. I'll call your office in the morning to discuss a bit more on how I should follow things through.

Lakhe
Posts: 5
Joined: Wed Mar 02, 2016 8:56 am

Re: Need help managing my home loan

Post by Lakhe »

Our mortgage broker also severed their relationship with us (it seems) once our loan was settled. They haven't called us or even sent us an email or anything since. We really like the idea of a post-settlement team specifically helping us manage our home loan. We're thinking of refinancing soon so what are your fees and charges might I ask?

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Need help managing my home loan

Post by Otto Dargan »

Hi Lakhe,

The banks actually pay us for introducing loan applications that would otherwise be completed by one of their staff. This is why we don't need to charge a fee for most loans.

You won't need to pay us anything if:
  • You're borrowing or refinancing more than $200,000,
  • Your situation isn't overly complex, and
  • You're keeping the loan for over two years.
If you have a question about our fee structure, please don't hesitate to call us.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Lakhe
Posts: 5
Joined: Wed Mar 02, 2016 8:56 am

Re: Need help managing my home loan

Post by Lakhe »

That's nice. Thanks Otto. Will give you a call as soon as possible to discuss in detail. Bye.

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