Immediate savings on your current interest rate could be just a 5 minute phone call away.
While all lenders will offer you a competitive rate when you first get your loan, they invariably push the variable rate up over time, blaming rising costs, whilst continuing to provide market leading rates to new customers.
For variable loans, most lenders will push your rate up by about 0.2% every year or two compared to new customer rates. This can increase your interest cost by $2,000 per annum for every $1,000,000 of loans. It’s disappointing of course, but you certainly do not need to sit back and accept this.
Although we do our best to negotiate this for you where we can, it’s usually much more effective and faster for you to make this request yourself with a 5 minute phone call. Banks are usually much more responsive to clients that are willing to walk away for a better rate elsewhere and with our help, you can push even more confidently for a better rate.
Call your lender and ask for a better variable rate
You do not need to provide any paperwork or make any other changes to your loan if you’re after a better variable rate, which is the simplest thing to do for now.
Quote the current market leading rates
To push more confidently for a better rate, be sure to quote the market leading rates available at the time and ask your lender to match it. If they don’t offer within 0.2% of these rates, let them know you are not satisfied and you will consider moving lenders.
Ask for a Mortgage Discharge Form
This is the form you would use to discharge your mortgage with them and move to another lender, however it is just a blank form at the time and does not need to be completed. It generally just helps escalate your discount request to a senior manager or their retention team who usually have higher authority for larger discounts.
You can also switch to a fixed rate if you feel that is best for you at the time.
Current Market Leading Rates and Lenders*
Owner-Occupied
| Lender | P & I | Int Only | Fixed/Variable | Offset Account |
| ANZ | 2.19% | Fixed 1,2 & 3 Yrs | No | |
| CBA | 2.29% | 3.54% | Fixed, 1 & 2 Yrs | No |
ANZ | 2.72% | Variable Basic | No | |
AMP | 2.80% | Variable | Yes | |
Bankwest | 2.80% | 3.34% | Variable | Yes |
Westpac | 3.04% | Variable | Yes |
Investment
| Lender | P & I | Int Only | Fixed/Variable | Offset Account |
Westpac | 2.59% | Fixed 2 Yrs | No | |
ANZ | 2.64% | Fixed 2 Yrs | No | |
AMP | 2.80% | 3.29% | Variable | Yes |
BankWest | 3.17% | 3.50% | Variable | Yes |
Westpac | 3.29% | 3.59% | Variable | Yes |
* This is a current list as at 1 April 2020 to help you negotiate with your lender. There may well be other lenders at the time with lower rates, however we usually quote the more major lenders for use in negotiating with your current lender. Major lenders will usually compete with other major lenders, and small and non-bank lenders will usually compete with all lenders.
Contact us to discuss your other options
We encourage you to call us to discuss your options. If your financial situation has changed recently, we may well need to consider a revised finance strategy.
If refinancing is a consideration, we will look at all other appropriate lenders, taking into account many other factors such as borrowing capacity, valuation and structure to name a few.
We at inSynergy, may be able to refinance to an even better rate, increase your loan buffers, switch to interest only and/or extend your principal and interest term to reduce your repayments even further.