Are Lower Interests Offered to New Borrowers Only?
While banks may be hesitant to offer existing customers lower rates, they are not exclusively reserved for new borrowers. Banks will indeed provide their best rates to new clients, but as long as you can show that you qualify for lower rates, you should be able to receive a lower interest rate.
How Do I Show I Qualify for Lower Interest Rates?
Your lender wants to know you can repay your loan. You can qualify for a lower interest rate by showing you are a strong borrower and secure financial position. If you want to negotiate lower interest rates, you may need to provide your lender with the following:
- Financial documents, including payslips and bank account statements
- Your credit history and file
- Proof of regular loan and credit card repayments
- Proof of savings
How Do I Talk to My Lender About Lowering my Interest Rates?
Your lender will probably not automatically lower your interest rates. To get them to start the process, you will have to approach them with information about the current interest rates. You can gather this information by using online comparison tools to compare your current rate to the national average and the rates offered by other lenders. You can also file a pricing request.
If you want to discuss a lower interest rate with your lender but don’t know where to start, the experts at Mortgage House may be able to help. Our brokers can help you compare your current rate with those offered by other lenders. We can also help you gather the proof you need to show your lender you are a good borrower with stable employment and a good income.