As home loan rates increase for the first time in many years, you may be wondering “how can I get a better rate on my home or investment loan?”
The answer may be as simple as picking up the phone…

Are you in a position to haggle?
Before you try to nab a lower home loan rate, you’ll want to position yourself as a more ‘ideal’ borrower.
Put simply, this is a mortgage holder who:
• Has 20% equity or a loan of max 80% LVR
• Lives in the property = Owner Occupied property
• Is paying principal and interest
If you only tick one or two of these boxes (for example, because you’re an investor), you can still fight for a lower rate. Just keep in mind that some lenders save the lowest home loan rates for borrowers with LVRs of 80 or below.

Talk your way to a lower rate
If you’re currently paying off your mortgage, an interest rate cut could be waiting for you if you just pick up the phone and ask for one. All you need to do is call up your bank or mortgage broker, and ask if you can get a lower your rate.
We do this all the time for our clients!
And if your bank is unwilling to budge, or if we believe another lender is actually a better option, the time may have come to consider refinancing.

Keep in mind that there are fees associated with refinancing. These can include upfront fees, break fees for fixed loans, and lender’s mortgage insurance if you’ve not paid off 20% of the loan.

However, the benefit of refinancing to a lower rate loan is that your mortgage repayments may reduce, saving you money in the long run. This means you could eventually break even on these fees, sometimes in a matter of months.

Want to look at your refinance options? Click here to get started