If You Are Considering Switching Mortgage Lenders

Before you decide to switch your home loan to another lender, you need to try and negotiate with your current lender.

A survey conducted by consumer group Choice in September 2010 revealed that one-third of over 2000 Australians surveyed has asked their financial institutions to reduce their interest rates on their mortgages.

The survey revealed the following:

  • Almost 40 percent convinced their bank to reduce their interest rate by 0.25 percent less.
  • A quarter was given 0.25 and 0.5 percent less.
  • A quarter was given 0.5 percent and 1.00 percent less.
  • One in ten received between 1 to 2 percent off.

41 percent of customers that requested a discount did not get the response that they had hoped for and did not receive any discount at all.

Negotiating with your mortgage lender does not always work for everyone. If you lender has refused to reduce your rate then don't be disheartened as you may be able to find a better deal by shopping around.

You need to be fully aware that if you decide to take your business elsewhere that it can be a costly exercise, so make sure that you find out about all fees and charges involved in changing from your existing loan, as well as the setting up of the new one.

Give us a call on 1300 793 143 and let our mortgage broker help you find the best deal available to meet your requirements.

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Published on February 2-st, 2011 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.

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