How Can I Get a Better Interest Rate?
Current and potential borrowers may want to learn more about how they can obtain a lower interest rate on their existing loan. Interest rates can affect how much a borrower repays over the life of their loan. Higher interest rates can result in a borrower paying much more over their loan life, whereas lower interest rates can save money.
So, how can you get a better interest rate? It is entirely possible to negotiate a lowered interest rate with your current mortgage provider, however, you should know the lowest interest rate they currently offer before negotiating. You can determine your mortgage provider’s lowest interest rates by visiting their website or giving them a call.
Borrowers who have missed loan repayments, are non-traditional borrowers, or have a low document loan may be ineligible to negotiate with their mortgage provider for a lower interest rate.
Mortgage providers look for certain criteria when a client negotiates for a lower interest rate, including the following examples:
- Loans that are under 80% of the property’s value
- Home loans generally get better deals and interest rates than investment loans
- Larger loans generally get better interest rates
Mortgage providers typically offer better interest rates to new clients, so refinancing your current loan with a new mortgage provider can allow you to receive a lower interest rate. If you are interested in refinancing for a better interest rate, researching and comparing the various mortgage providers and loan options available to you is the best way to ensure you select the option with the best potential for lower interest rates.