Why Can’t I Get a Lower Interest Rate When Other Mortgage Providers Offer Lower Rates?
If you have an existing loan agreement with your current mortgage provider, you may want to understand why you cannot get a lower interest rate when other mortgage providers offer lower rates. The interest rate your current mortgage provider charges on your loan agreement largely depends on a wide variety of factors. However, some factors are outside of your provider’s control, including the cash rate that is set by the RBA.
Other factors that can play a role in why you are unable to get a lower interest rate are controlled by the bank involved with your existing loan agreement. These factors include banks charging new customers higher interest rates, charging higher interest rates on large loans, and higher interest rates on investment loans over owner-occupied home loans. There are several reasons why your provider will not allow you to obtain a lower interest rate, such as having a large loan size or being on a fixed-rate agreement.
How Can I Get a Lower Interest Rate?
There are various methods you can explore to potentially gain access to a lower interest rate on your loan agreement. One of these methods is negotiating your current interest rate with your existing provider. However, negotiating will not always result in a lowered interest rate, as the decision is up to your providers discretion.
Another way to obtain a lower interest rate is pursuing a refinancer loan with a new mortgage provider that is offering lowered interest rates. If you would like to learn more about refinancer loans, reach out to Mortgage House for further information.