Everyone wants to get the lowest home loan rates in the current rate rise environment. You might be wondering how you actually go about getting the best deal in the market? Or can a broker help you do better? In this post, I will share with you our four tried and tested ways to ensure you are getting the most competitive interest rate.
There is one thing you need to remember – not every borrower is made equal. Who you know and what you bring to the table when buying your NEXT home is what determines the competitiveness of the interest rates you get.
1. Market Coverage and Market Knowledge.
As a finance broking firm, we have a broad lending panel with over 30 different lenders.
With a large variety comes choice, and from choice comes the competitive pressure that helps drive the interest rate down with your preferred lender.
Our accreditations with many different lenders also mean that we are the first to get notified when a deal is brought to market, allowing us to present it to you as soon as possible.
Now, of course, you can try doing this yourself but it’s kind of like trying to do your own surgery – it’s hard to replace the years of experience and network.
2. Pricing Tools at our Fingertips
The second way is we have the tools at our fingertips to request the best rate and do the hard work for you.
Most major banks have pricing tools that allow us to effectively negotiate interest rates on your behalf. These are online systems where a pricing request is submitted, and which are not available to the public.
Our staff are trained to put your best foot forward in every pricing request, and this is often the starting point before considering non-major and challenger banks.
Our practice is to rarely accept the bank’s first offer, and we will typically escalate your request with more information to ensure you get the most competitive offer.
3. Relationships with the Bank
Thirdly, we have personal relationships within the bank to help you do better.
If a pricing tool gives a response, but we think we can do better for you, we will stick our neck out for you by leveraging our relationships for another review of your deal.
Each lender has a Business Development Manager or “BDM” whom we can bring requests and issues to, such as seeking a more competitive pricing outcome.
This is especially the case for Jumbo Home loans or refinancing large loan portfolios when securing finance for your next home.
As the saying goes – If you don’t ask, you don’t get. Even if you don’t have a broker right now, you should double check with the bank that they are offering you the best rate.
4. The Rate is more about YOU than it is about the Bank
Finally, we understand the rate is more about you than it is about the bank.
There is no point talking about interest rates when you can’t get the loan in the first place. Therefore, the most important step is to make sure that your loan will be approved, before going in to negotiate your rate.
This is about intimately understanding each bank’s policies, and your strength as a customer.
This is about presenting your income, your deposit, and your credit history as positively and as confidently as possible to make sure the bank wants to give you the best deal.
Bear this mind when talking to a bank and if you ever need a second opinion, speak to an experienced broker to help you to present your scenario under the best light.
After your loan settles..
Our efforts to ensure you get the best deal don’t stop at buying your next home. After settlement, our Annual Review process makes sure your rates remain sharp year in year out for as long as you are an SF Capital client.
Speak to a Broker
If you have any questions or comments on this topic, you are more than welcome to get in touch with me () or anyone in our broking team.
For more tips on getting your next home, please stay tuned or head to our Youtube channel – “The Next Home Series“