Do you really get the best interest rate from your bank? Have you thought about how you could negotiate your interest rate down?
When interest rates go down the banks give you something to keep you happy, so you won’t ask for more. But could you get more? Why not try.
Review your interest rates and speak to your bank to get a better rate. Don’t let them shut you down with the excuse that they have already reduced the rates. The reality is that there is more room to move because if they can give away something without you asking then they can probably give you more.
- Do your research
Research what the competitors are offering. Use comparison websites and then call the bank to make sure that you would get this rate.
- Find out what the rate for new customers is
Banks often offer great promotions to lure in new clients which existing clients don’t get. This is something that I find annoying, why don’t they reward loyalty instead.
- Set yourself a target rate
Set yourself a target rate that you want to get. Start a bit higher as they most probably won’t go to your rate but they will offer something below that. Since you started higher you can then move in your demands into their direction.
- Make your threats reality
If you say that you will move to another lender because they were not willing to offer you a better rate, make sure you do go through with that. If you don’t then you lose credibility and all your bargaining power with that bank. While it is hard work to apply for a loan with a new bank look at it as work that you get paid for in saved interest. You could save a couple of hundred dollars each month just by changing.
Now its your turn! Do you know what interest you are currently paying on your home loan? If you can’t answer this question right now, then check it out and start negotiating. You can negotiate your interest rate down. Make it a priority that you will have completed by the end of the year!