These easiest way to get your bank to drop your home loan rate further
Banks have recently revealed their latest round of interest rate cuts but it is possible to get them to give you an even better deal. THIS IS HOW YOU DO IT.
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THAT’S it — I’d had enough.
I decided it was time to break up with my bank.
After the Reserve Bank of Australia governor Philip Lowe cut the cash by 0.25 per cent, my lender decided they were only going to pass on some of the cut.
They wanted a slice of the pie, too, so they only handed me a 0.15 percentage point drop, leaving me paying an owner-occupier principal and interest rate of 3.33 per cent.
Home loan rates are now as low as 2.74 per cent so I figured I could do far better.
I scrolled online, looked at a rival lender who could offer me 2.84 per cent and lodged my personal details with them.
While waiting for a call back, I thought I’d give my lender one last ditch attempt to keep me.
I phoned them and asked to be put through to the home loan retention team.
When I was put through to the polite bloke at the other end of the line — let’s call him Jack — I told him enough was enough.
“I’m getting jibbed here on my rate; you need to give me something better because passing on a 0.15 percentage point drop isn’t good enough,” I said.
“I’m about to switch to another bank unless you come to the party.”
I’ve got a bit of a history with my lender.
I phone them at least three or four times a year and demand a better deal.
So sometimes they know I’m all talk and no action — I say I’m leaving and don’t — but this time I was serious.
Jack was quick to point out I do call them up regularly.
“I see you’ve phoned us up a few times but it’s been a while since we’ve reviewed your rates (it’s probably been about six months),” he said.
Jack then asked if I was ringing up on the back of the latest rate cut, to which I said, “Damn right I am.
You didn’t pass on the full cut and it’s not good enough.”
He replied, “OK just hang on and I’ll see what I can do.”
MORE: Why failing to switch banks could cost you thousands
MORE: Best ways to invest money as rates fall
That’s when I knew I was about to get something better from my lender.
Within the blink of an eye he was back on the line to reveal the good news.
“We’ve managed to take a look at your loan and, yes, we can offer you a better rate,” Jack said.
“We’ll take some more off.”
They cut my rate again, this time by 0.16 percentage points, bringing it down to 3.17 per cent.
It will save me thousands in interest costs and help me pay off my loan a few months earlier.
So definitely pick up that phone and talk tough with your lender.
I saved money and didn’t even have to do a scrap of paperwork. Winning!
Originally published as These easiest way to get your bank to drop your home loan rate further