22 Jul 2021

Can You Negotiate a Lower Mortgage Rate Without Refinancing?

The Different Types of Home Loans

Yes. While refinancing your home loan is a popular negotiation tactic to lower your interest rates, it is possible to negotiate a lower rate without doing so. However, it does mean being willing to work with your current lender. 


How to Negotiate Without Refinancing

Right now, Australian interest rates are at a record low. If your lender offers lower interest rates, doing the following may allow you to negotiate a lower rate.


  1. Call your lender. If you have a good credit score, have made all your loan repayments on time, and have a stable income, you can call your lender and ask them about reducing your rate. If you are a good borrower, they will most likely be willing to negotiate with you, especially if you are confident as you discuss the rates they offer new borrowers.
  2. Hire a mortgage broker. Not only can a mortgage broker compare your current rates to the ones your lender offers new borrowers, but they can also negotiate for you. In addition, your broker can look at your whole financial situation to determine if your lender will be willing to consider a rate decrease. 


When negotiating with your lender, some factors may increase your credibility. For example, if your interest rate was set more than a year ago, your equity has grown since you last reviewed your loan. In addition, your credit has improved since you applied for your loan, your lender may be more willing to lower your interest rate.

The Mortgage House Difference

If you want to negotiate a lower interest rate with your current lender and don’t want to go through the hassle of refinancing, the brokers at Mortgage House can walk you through the process. We can assess your financial situation, help you improve your negotiating power, or even negotiate for you. 

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