Louisa Sanghera

With hundreds of thousands of fixed-rate home loans still to expire in the next year, existing borrowers can use five key strategies to help secure the best home loan rates, according to one of the nation’s most awarded mortgage brokers. 

Another 40 per cent of fixed-rate loans outstanding in early 2022 will expire by the end of 2023 and a further 20 per cent by the end of 2024. This equated to 590,000 loan facilities in 2022, 880,000 in 2023 and 450,000 in 2024, according to the Reserve Bank of Australia.

Zippy Financial Director and Principal Broker Louisa Sanghera said the bulk of fixed-rate loans are expiring in the second half of this year, with many existing borrowers having to renegotiate with their current lenders because they are unable to refinance.

“The rapid increase in interest rates since May last year means many existing borrowers are stuck with their current lenders, because they simply don’t qualify to refinance elsewhere at present,” Ms Sanghera said.

“However, that doesn’t mean that borrowers need to just accept any old ‘offer’ from their lender or – worse still – simply allow their home loans to roll over to the advertised variable rates.

“Rather, by being proactive and undertaking some simple research, existing borrowers can give themselves a better chance of securing a much better home loan rate.”

5 home loan negotiation strategies  

1. Find the best rate on offer

Ms Sanghera said borrowers should research the best home loan rates currently on offer in the market and use this research as leverage with their current lenders. “Find the best rate in the market then take that rate to your bank and ask them to beat it,” she said.

2. Speak to the retention team

Ms Sanghera said borrowers often make the mistake of talking to the wrong people when renegotiating their home loans. “Always ask for the bank’s retention team directly as they have the best rates, rather than someone who may just be in the home loan call centre,” she said.

3. Don’t give up  

Ms Sanghera said too many borrowers are passive when it comes to their home loans when they should be proactive whenever possible. “If the rate they offer you is still underwhelming, don’t give up, and repeat the same process every six months,” she said.   

4. Name drop your LVR

Ms Sanghera said many existing borrowers have built up significant equity in their homes over recent years, which they can use to their advantage in negotiations. “Lower loan-to-value ratios, or LVRs, do carry lower rates with lenders. So, if your property has gone up in value, you may qualify for a cheaper rate, so make sure you know your current LVR before calling,” she said.  

5. Ask for fee waiver  

Ms Sanghera said that sometimes banks simply won’t offer a lower rate, but there are still ways for borrowers to save money. “If they say they can’t lower the rate, then ask if they can waive the annual fee instead,” she said.  

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