Can I negotiate a better deal with my current lender?

As a consumer, it’s always in your best interest to find deals that will help you save more money than you’re currently spending. This applies to whether you’re buying groceries or shopping for a home loan. If you’re wondering if you can ask for a better deal from your current lender, then the answer is yes, you sure can.

Consumers are Winners in Today’s Market

We’ll let you in on a little secret: the record low interest rates have led consumers to look for better deals than what they have at the moment. So, in order to persuade these clients to stay with them, lenders are constantly coming up with their own attractive deals. This is likely the case with your lender right now. The reason that they work hard to keep you is that it will be more cost-effective for them to retain you as a customer than spend their resources on finding new ones. However a lot of the lenders at the moment are losing clients as there are better deals out there and they can’t compete. It is most important to review your current lender and any other lenders out there to make sure you have a lower more suitable home loan interest rate and overall product.

Getting Better Deals Through Your Broker

When you took out your home loan, chances are that a mortgage broker helped you secure a deal and now that you’re looking for a better one, your broker will once again come to your aid.

One of the ways a broker can help you is to shop around for great deals. In fact, this is the first step that you should take. Those looking for a bargain for anything always shop around to find the best price, so why would you not do the same with one of your biggest investments?

This will put you at a better position at the negotiating table, making your lender much more willing to give in to your demands. Using a broker to do your research will help make the process faster and more efficient.

A broker can also negotiate on your behalf, which will open you up to deals that you might not find on your own. The reason for this is that brokers have already built strong relationships with lenders in their network, so it’s always in the best interest of the lender to provide great deals to the broker’s clients. That way, brokers will continue referring clients to the lenders in return.

When negotiating a better with your current lender it is important to also consider if there are fees involved. Some loans have a fee for paying out your loan or switching loan products, so it is best to understand your situation before switching to ensure you are not paying any hefty fees just to save a small percentage. You need to work out the overall costing’s over a period of time.

In other words, using a mortgage broker helps give you the upper hand when you’re negotiating for a great deal. A broker can also make your work easier because they can prepare the application for the lender to assess, process those loans, and follow up your applications on your behalf. These things can help you save a lot of time and money, not only on the loan itself, but also on the legwork you no longer have to do on your own.

Written by Joe Del Borrello