Can you ask for a discount on your mortgage rate?
Haggling doesn’t come easy to many people. Negotiating over the price of goods and services simply isn’t that common in some countries.
But are homebuyers missing out on thousands of dollars of savings because they balk at bargaining? The answer is yes, according to new research from finder.com.au.
People can save $20,000 over the course of a mortgage by securing a discount of just 0.2 percentage points on the interest rate, yet less than half of respondents (43 per cent) have the confidence to ask.
Are you getting the most competitive mortgage deal?
The survey seems to be good news for natural negotiators, although there was a slight dip in the proportion of people who received discounts compared to last year.
Finder.com.au said 82 per cent received a more favourable rate if they requested one in 2016, suggesting financial institutions may require more persuading in the current economic climate.
Despite this, money expert at finder.com.au Bessie Hassan said many people could still get a better deal.
“Don’t settle for the advertised rate. Have the confidence to ask for a lower rate and reap the reward that will come with making smaller mortgage repayments,” she explained.
Australians reluctant to negotiate home loans
If you still feel too hesitant to haggle, don’t worry; you are in good company.
A 2016 Mozo survey revealed that Australians are more likely to ask for discounts on a fridge than a home loan. This is despite the average saving for successful mortgage negotiators being $968, while bargaining over white goods nets just $139.
Like finder.com.au, Mozo also found a high rate of success among people asking for better rates on their mortgage. In fact, the results were identical – both surveys said 77 per cent of hagglers receive a discount.
But if you’d prefer to take some of the hard work out of securing a lower interest rates on your next home loan, speak to our team of home loan specialists.
Talk to us today! Contact our team today to see how our specialists can help you with your next purchase.