Barefoot Investor: Scott Pape’s script for getting a better home loan
Not sure how to ask your bank for a better home loan? Barefoot Investor Scott Pape has done the hard work for you, creating a script for you to use to get a better home loan from your bank.
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Barefoot Investor SCOTT PAPE’S SCRIPT TO GET A BETTER HOME LOAN
You: Hello, my account number is ______. I’ve been with you for ___ years, but I’ve applied to refinance with UBank. Their rate is ____ per cent, which is a full ___ per cent cheaper than you’re charging me. Given our longstanding relationship, I’d like you to match the offer — or send me the forms I need to switch to UBank.
Bank rep: One moment, please.
(You’re bluffing, of course. However, the bank’s sales team have strict targets, backed by incentives, that they have to meet — one of which is giving profitable customers discounts to stop them leaving.)
Bank rep: We can’t match the rate you have quoted. However, we understand you are a valuable customer, so we would like to offer you a 0.15 per cent discount.
You: That’s not good enough. I’ve already got conditional approval … so in order to stay I need at least a 0.5 per cent discount. Could you please speak to your supervisor? I’m happy to wait.
Bank rep (a full six minutes later): On reviewing your case, we can offer you that 0.5 per cent discount on your current rate.
You: Brilliant! Please send me an email confirming the new rate and confirming that it will be applied as of start of business tomorrow.
Originally published as Barefoot Investor: Scott Pape’s script for getting a better home loan