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Home Loan is 590k and our home is around 900k. I called our lender and they dropped our rate from 4.34% to 4.04% this week. Is that enough, could they do better or should I look to refinance?
Responses
Hi Ian,
Well done in the negotiations but speak to a mortgage broker. Most brokers will be able to offer several lenders with home loan rates between 3.59%~3.74% depending on the features you require and your personal situation.
regards
Awesome Albert
Hi Ian
Great work negotiating the rate reduction. You can do better than that by refinancing to a different lender.
Happy to assist you with this if you like!
Feel free to contact me on 1800 824 325 or 0414 727 308 to book in a date and time for me to come to you and discuss your options.
Regards
Sam Zammit
Hi Ian,
Great job being proactive and looking for a better deal. There are some fantastic rates out there at the moment lower than 4.04% so we should be able organize a better offer for you depending on all of your requirements.
I am happy to discuss how we can find the best solution for you. If you would like to contact me on 0431.156.001 I would be happy to help you out.
Kind regards,
Jacqui
Hi ian,
A reduction of .40 basis point will give you a reduction in monthly cash flow and an overall interest saving which is really excellent if that’s what your hoping to achieve.
I find many clients focused on the cheapest rate end up paying their mortgage for a massively long period of time - perhaps even the full 30 years because they have chased the cheapest rate.
We work hard to show out clients how to use a low rate - like the one you have already secured - to reduce your mortgage and own your home sooner with a few simple tweaks.
I challenge your thoughts areoind chasing the cheapest rate at the mercy of owning your own home sooner and becoming mortgage free - it is a life transforming moment!
As you have heard above - there ARE cheaper rates available, it’s up to you to decide what you REALLY want?
A mortgage for more than 30 years OR working towards being mortgage free?
Hope that provides a little professional perspective for you to digest.
Happy shopping
Regards
Craig
0481 383 490
Hi neighbour.
Suggest calling your lender one more time.
Tell them you've seen lower rates on offer from other banks. You should be down around 3.7%.
If they won't come to the party fo what Mark Bouris does and tell them "you're sacked", then call me to arrange an obligation free appointment at my office in Baulkham Hills. Google me for details.
Speak soon. Stephen Dinte
Hi Craig,
I’m interested to know why they can’t have a lower rate AND work strategies to pay down their loan?
Cheers
Scott
Thanks Scott,
A fair distinction here is at what point are you REALLY saving money when you refinance to another lender.
As we know the annualised interest on a $100,000 loan if the rate was 4.04% would be $4,040 per annum and if the rate was 3.79% the interest cost would be $3,790 - the annualised interest saving would be $250 per annum - this cost alone would generally not cover an annual package fee let alone any discharge fees and mortgage stamping fees.
So the refinance cost upfront is a definite consideration added to the interest rate calculated daily debited monthly.
Scott, the strategy of rate + mortgage minimisation is an excellent one that most quality brokers use,
My fear here is the bank have only lowered the rate and not helped with implementation of a mortgage minimisation strategy. This is where my comment was driving at.
Thanks for allowing me to clarify - at the end of the day we all know - people want a home - not a home loan and we have a responsibility to help them achieve that!
Regards
Craig
Thanks Craig,
Completely true. I have that conversation everyday, “can I get 3.39% that I saw online”. Well you can if you want, but you need a loan that best suits you and you goals that is then at the most competitive rate.
Cheers