Negotiate the Best Home Loan Rates
Having the best home loan rate is essential to save thousands of dollars over the life of your loan. If you notice that your interest rate has increased, it may be time to negotiate your loan. Here are the best ways to improve your negotiating power.
Find the lowest possible rate.
The best way to show your lender you are knowledgeable about how your interest rate compares to those offered by other lenders is by running a rate comparison. You can use an online rate comparison tool to see the difference between your interest rate and the interest rate on a comparable loan from a different lender. You’ll also need to know the lowest rate offered by your lender. Usually, you can find this information on your lender’s website.
Learn if your bank will negotiate with you
Banks and other lenders won’t negotiate with everyone. However, if you fit the following criteria, your bank may be willing to offer you a lower rate:
- In general, banks offer lower interest rates to larger loans.
- If you borrow less than 80% of your home’s value, your bank may negotiate with you.
- If your property is owner-occupied and not an investment property, we may be able to get a lower rate.
- If you are a new customer, you may be willing to negotiate a lower rate.
Work with a Mortgage Broker
Mortgage brokers can help make the negotiating process easier. Not only will they review your existing home loan and run a rate comparison, but they can also submit a pricing request to your lender. This request shows your lender you are serious about refinancing elsewhere.
If you want to negotiate your rate with your current lender, the brokers at Mortgage House can help. However, if your lender doesn’t negotiate, we can help you refinance your loan for a lower interest rate.