Interest rates are up but here’s how to bring yours down

The Reserve Bank has given interest rates another hike, of .25 per cent, making anyone who has a mortgage more than a little nervous.

Repayments on a loan of $500,000 are now estimated to have gone up nearly $700 a month since May this year.

I say it’s time to put your negotiating skills into practice. These are the same skills that will help you when you are negotiating a higher salary.

Here’s 5 steps to getting a lower interest rate.

1. Research all the rates out there to find out if any lenders are offering a better rate than you are paying.
2. Call your lender and tell them that you’ve looked at comparison rates and you know you can do better. Quote examples to them.
3. Emphasise how long you’ve been with the bank, or how you always pay on time.
4. Don’t be easily discouraged. Tell them that if they don’t come to the party with a better interest rate, you will go elsewhere.
5. Ask them to send you a discharge form to show that you are serious and then wait for a call from the mortgage deal with a better deal.

If your bank doesn’t give you a better rate, see a mortgage broker who can negotiate one for you.