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.
- Research all the rates out there to find out if any lenders are offering a better rate than you are paying.
- Call your lender and tell them that you’ve looked at comparison rates and you know you can do better. Quote examples to them.
- Emphasise how long you’ve been with the bank, or how you always pay on time.
- 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.
- 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.