Borrowers bargaining for better mortgage deals

December 16, 2017

 

better deal

A new survey has found that a third of Australians have successfully negotiated a better deal on their mortgage.

The survey by finder.com.au revealed that 33 per cent of the 1,286 respondents managed to successfully bargain for a lower interest rate on their home loan.

From the 43 per cent of home owners that attempted to negotiate a better mortgage rate, 77 per cent were successful.

The survey also reported that 45 per cent of respondents were unaware that they could bargain their way to a better deal, and 12 per cent were given a discount on their rate without asking.

“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.

“If you don’t ask, you don’t get,” money expert at Finder Bessie Hassan said.

“Right now, unless your mortgage rate has a three in front of it, you could be getting a better deal. If your lender won’t give you a discount, it’s time to jump online and compare.”

Respondents from Generation X were most likely to receive a discount (38 per cent), followed by Generation Y (32 per cent), with Baby Boomers being the least likely to bargain for a discount (28 per cent).

Western Australians were most successful at negotiating a better deal (39 per cent) while Tasmanians were least successful (26 per cent).

When asked what feature, aside from interest rates, is most important when choosing a loan, 36 per cent of the respondents cited “fees”, followed by “ability to make repayments” (28 per cent), “offset account” (18 per cent), “redraw facility” (13 per cent) and “portability” (5 per cent).

“When reviewing home loan options, fees trump nearly all else,” Ms Hassan stated. “However, it appears Australians are becoming savvier when understanding the value of making additional repayments and using a linked offset account.”

originally published by : the adviser 

Tags: , , , , , ,


Better Choice Mortgage Services is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this website. While the information contained within this website is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. Although the Better Choice Mortgage Services website may include links providing direct access to other internet resources, including websites, Better Choice Mortgage Services is not responsible for the accuracy or content of information contained in these websites. Links from Better Choice Mortgage Services to third-party sites do not constitute an endorsement by Better Choice Mortgage Services of the parties or their products and services. The appearance on the website of advertisements and product or service information does not constitute an endorsement by Better Choice Mortgage Services, and Better Choice Mortgage Services has not investigated the claims made by any advertiser. Product information is based solely on material received from suppliers. Advanced Finance (Pty) Ltd t/a Better Choice Mortgage Services are not financial planners or accountants and we would encourage our clients to seek professional advice before acting on any a financial or taxation information in this news post.

Contact Us

1300 805 221

Better Choice