08 Jan 2022
How Long Can You Defer Your Mortgage?
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The interest rate your bank charges on your home loan depends on several factors. Some are outside the bank’s control, such as the cash rate set by the RBA. However, other factors that determine how much your lender charges you in interest are controlled by the bank. For instance, banks may charge higher interest rates on larger loans than smaller loans, investment loans over owner-occupied home loans, and higher rates to existing customers over new customers.
Let’s say you have done all the steps to start negotiating your interest rate with your bank. You’ve run rate comparisons to determine how your interest rate compares to comparable loans from other lenders. You’ve determined the rates your lender offers to new borrowers. You asked your broker to submit a pricing request. Unfortunately, even if you take all these steps, your mortgage provider may be unwilling to lower your interest rate. There could be several different reasons your bank won’t negotiate:
Regardless of the reason for your bank’s unwillingness to lower your interest rate, the brokers at Mortgage House can help. We can help you refinance your loan at a more competitive rate than your current one.