Use Your Power!

As a property owner, or potential property owner, you most likely either have or will need a mortgage, usually for an extended period of time. Mortgages are big business for financial institutions, and there is a lot of competition out there, with not only the big four to choose from, but many other players have come into the market, some of whom can offer a better deal…in any case it doesn’t hurt to ask, in fact you need to use your power as a consumer, and not just ask but demand a better deal!

Tips on Securing the Optimum Deal:

Make the phone call – ‘if you don’t ask, you don’t get’, contact your bank and request a better deal, statistics show that those who ask for a better rate are more often than not, successful.
Do your research – compare rates, ‘knowledge is power’, approach your bank equipped with the data to demonstrate that there are better deals out there, they won’t want to lose you; this straight away empowers you, let them match or exceed what their competitors are offering to retain your business. One of the upsides of the fallout from the financial services royal commission is it has given borrowers more leverage.
Explore ALL options – don’t just stick to the Big 4, despite a tighter lending market there are still many opportunities and promotions for owner-occupiers who have a good credit rating using some of their more minor competitors. Many non-bank lenders are using incentives to increase their market share, and they will work hard to win your business.
Use a Broker – if you are uncomfortable having the conversation or don’t have the time to do the research, consider using a broker, let them have the conversation for you. Most Brokers deal with the full suite of banks and non-banking lenders and should have up-to-the-minute product knowledge.

A home loan is usually the biggest debt most households incur throughout their lifetime, it is critical that you use your power as a consumer to negotiate the best possible deal…be bold, be prepared to walk and take your business elsewhere, you’ll be surprised how much power you hold.