Can You Ask Your Bank to Lower Your Mortgage Interest Rate?
Yes, you can ask your bank to lower your mortgage’s interest rate. Rate negotiation is a common practice, especially for experienced borrowers who understand that interest rates fluctuate. However, just because you ask your bank to lower your mortgage interest rate, it doesn’t mean they will be willing to.
How to Ask Your Bank to Lower Your Interest Rate
Before asking your lender to lower your interest rate, you need to know the lowest interest rate. You can use an online rate comparison tool to learn what other lenders are offering compared to your current rate. You can also hire a mortgage broker to make the comparison for you. The benefit of working with a broker is they have access to a wider variety of lender information. Once you know the lowest interest rates available, you need to find out what interest rate your lender offers its new borrowers.
Lenders often reserve their best interest rates for new borrowers. To find out what this new borrower rate is, you can search their website. More often than not, the interest rate listed is for new borrowers.
Once you have all this information, you can sit down with your bank to ask them to lower your interest rate. You can present them with interest rates from their competitors and with their new borrower interest rate. Additionally, you could submit a formal pricing request to let them know you are serious about lowering your interest rates.
If you are a good borrower with a high-value loan and have a strong credit standing, your bank may be more willing to work with you to lower your interest rate. However, if they aren’t, you can consider refinancing with a different lender.
Regardless of whether you want to refinance your home loan or not, the brokers at Mortgage House can help you compare interest rates. We can also help you submit a formal pricing request to your bank. Then, if you want to refinance, we can find your mortgage with the best rates.