Melbourne’s Best Independent Mortgage Broker – available 7 days a week

Learn How You Can Negotiate Mortgage Interest Rates

Can You Negotiate Mortgage Interest Rates

Share This Post

How to Negotiate Your Mortgage Interest Rates

One of the most important steps of purchasing a home is making sure you get an affordable mortgage rate.

You have to be ready to negotiate if you want to secure the lowest rate possible for the property you want. Of course, negotiating isn’t as simple as going to the bank and asking for the lowest rates. There are steps you should take to ensure you get the best interest rates. You can check these steps below:

1. Know where you stand – A mortgage broker can help assess your needs and repayment capabilities, which banks consider when negotiating with borrowers. Your broker will likely ask you some home loan health check questions to get more information.

2. Know what mortgage terms you want and need – This will make it easier for brokers to determine your threshold and make recommendations based on those limitations.

3. Get quotes from multiple lenders – You need to learn to shop around for the best rates. Don’t just settle for the first quote you get. Ultimately, you have to look at the value of the mortgage before you sign anything.

4. Compare total loan costs – Sometimes, even though it seems like your loan amount is big, the net amount that you will get is a lot smaller because it covers all the transactional fees. You need to make sure this isn’t the case with the loan you go for.

5. Negotiate with your lender – Be straightforward and be honest. Complete transparency with your lender will make them feel how serious you are about the mortgage and your intentions of keeping the property you’re buying with it.

6. Consider locking in the interest rate – Home loan interest rates can either be fixed or variable. If possible, lock in your interest rate. This will allow you to budget your monthly income more efficiently because your repayment budget stays the same.

If negotiating is not your thing, you can just contact an independent broker like What If We Finance for assistance. We’ll be more than glad to help you get the lowest mortgage interest rates for you.

Two-people-having-conversation

How to Improve Your Mortgage Negotiation Strategy

A lot of homebuyers, in their excitement to buy their home, fail to shop around before signing a mortgage contract. They usually go with the first bank or lender they can talk to and miss out on several opportunities to get lower interest rates. Mortgage interest rates in Australia can get really high, so you need to be smart about finding a lender. Here’s how you can improve your mortgage negotiation strategy:

These three strategies will prove that you’re a good potential borrower and allow you to negotiate lower rates before you lock.

1. Talk to multiple lenders – The more options you have, the higher the chance you can get the best deals.

2. Ask lenders to match lower rate offers from competitors – You can use competitor quotes when shopping around. If your finances look good, different lenders will want your business. If you show them that you’re eyeing other lenders, they will try to match those offers, if they can.

3. Strengthen your mortgage application – A good credit score will make you a preferred applicant in the eyes of lenders, which is why you should focus on increasing your scores. Home loan interest rate now isn’t going to be the same years from today, so invest in your credit score long before you buy your first property.

If all of this negotiation seems like too much work for you, you can just hire an independent home loan mortgage broker like What If We Finance. We can help you secure the lowest rates for your mortgage, so you don’t have to worry about repayment. Call us today for details.

Get updates and learn from the best

Subscribe To Our Newsletter

More To Explore

EXCELLENT
176 reviews on
Matthew B
Matthew B
2022-06-05
Looking at the reviews for What If We Finance, it comes at no surprise to see so many 5-stars. Spiro handled the mortgage part of my girlfriend and I purchasing our first home. He made himself available to us around the clock and ensured that we were across the entire process and felt as comfortable as possible. We're very fortunate to have gone about buying our first home with Sprio and we'd be more than happy to use him for future purchases and to refer on to family and friends. A big shout out to Agnes also who busily works away in the background and also does an incredible job. You guys are the best!
Read more
hari gowtham
hari gowtham
2022-06-03
Very happy with the results from Spiro from start to finish. Spiro and his team are very knowledgeable and have a very quick turnaround time. Couldn't be more happier with the service. Definitely my go-to person for upcoming purchase.
Read more
Gary Shekhter
Gary Shekhter
2022-06-02
Great broker and trustworthy. Honestly had seen 5 brokers and fund this wonderful guy. Who helped from start to finish fast and had our loan in no time at all. Thank you again champ you did an amazing job
Read more
Leonie Kemp
Leonie Kemp
2022-05-29
Thank you Spiro and Agnes for helping with the purchase of my first home. I needed to arrange finance quickly and Spiro did a fantastic job letting me know the best options for me and pushing to get the pre-approval so I didn't miss out on purchasing my home. Everything went very smoothly, thanks for helping make my first property purchase straightforward.
Read more
S S
S S
2022-05-28
Thank you Spiro and team for your help in financing the mortgage for the recent property purchase. Spiro provided timely advise, guided me on the process and was swift in processing the documents. His friendly attitude makes the process even better. Thank you once again.
Read more
Anita Naughton
Anita Naughton
2022-05-27
As a first home buyer I had very limited knowledge on what I needed to do. I searched for a broker and What if we finance stood out due to reviews. I had my first session with Spiro and never looked back! The whole process was seamless, I felt supported and could always connect with Spiro when needed. Spiro and Agnes are experts in what they do and I would highly recommended anyone looking for finance to choose What if we finance. I will be a lifelong customer and look forward to buying our next house with their support.
Read more
Mahmoud Al Kilzi
Mahmoud Al Kilzi
2022-05-25
Spiro & his team did a great job by getting my loan sorted in time. I would recommend them to family & friend. Great work guys much appreciated.
Read more
Rebecca Zeeman
Rebecca Zeeman
2022-05-20
Spiro and Agnes provided great help and advocacy in getting us our home loan. We felt they were always available and were super efficient in getting it all done on time! The process was so simple and without stress thanks them both.
Read more
Irish Azcuna
Irish Azcuna
2022-05-09
I can’t thank Spiro and Agnes enough for making my first home purchase so efficient, stress-free and seamless! If I could give more than 5 stars I would. As a first home buyer applying for one or the government’s schemes, my situation would have been so complicated that I never imagined being able to complete the process in such a short time. Spiro’s in-depth knowledge, invaluable and always-available support, and genuine willingness to help get me the right mortgage for my situation, made everything possible. His pragmatic advice even helped me decide on the right property for us, which would help us achieve our long-term goals. I highly recommend Spiro and his team. We will definitely engage their service again for our next property. They are the best!
Read more
Renee Briggs
Renee Briggs
2022-05-02
Spiro is reliable, has your best interest as his top priority and is fast to get great results. We wouldn't ask anyone else for their professional opinion- Spiro is the best in the business.
Read more