Five tips for a better home loan deal: Mozo's Kirsty Lamont

Five tips for a better home loan deal: Mozo's Kirsty Lamont
Five tips for a better home loan deal: Mozo's Kirsty Lamont

Borrowers disappointed by the RBA’s decision to keep interest rates on hold can still get an early Christmas rate cut on their home loan by haggling their lender for a better deal, according to Mozo.com.au.

In a recent mystery shopping exercise, Mozo staff posing as borrowers were able to haggle huge discounts of up to 1.25% off the standard variable home loan rate, simply by calling up the banks and asking. 

“The Big 4 are competing more fiercely for owner occupiers in the wake of the crackdown on investor lending, with discounts on offer to these borrowers the biggest we’ve seen,” said Mozo Director Kirsty Lamont.

Mozo data shows that by haggling 1.25% off the average standard variable rate, borrowers could save $223 a month on their repayments on a $300,000, 30-year loan.

“When pushed banks are prepared to offer better discounts beyond their advertised home loan deals which can lead to savings of $2676 each year for borrowers,” said Lamont.

As well as discounts on interest rates, lenders also offered other bonuses including cash back offers and frequent flyer points.

“With 27 home loan providers increasing their variable rates in this month alone, borrowers need to be prepared to do some hard negotiating to get the biggest discounts.” 

Here are Mozo’s top tips to get a better deal on your home loan:

1.    Don’t settle for the advertised price

2.    Research what the best deals are on the market and what competitor lenders are offering

3.    Start negotiating only when the lender knows you’re a good loan candidate

4.    If you can’t haggle on the interest rate, haggle on other aspects of the loan like asking them to waive your home loan application fees

5.    Be willing to move other banking products such as credit cards and transaction accounts to your new lender.

 

Kirsty Lamont is marketing director of Mozo.

Tags: 
Interest Rates Home Loans

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