How to Get a Lower Interest Rate on Your Home Loan

​In the current economic climate, low interest rates are not just a bonus - they are expected.
 
Fortunately, if you are working with a mortgage broker, they will be able to help you get the very best deal you can and that will mean you will be receiving the very best interest rates on your home loan.
 
So how do you actually go about getting a lower interest rate?
 
Ask for a Better Rate 
As simple as it sounds, if you feel you could be getting a better rate, you might simply be able to ask for one.
 
If you’ve been with a lender for a long period of time and have a great track record of making your repayments on time, they won’t want to lose you.
 
That gives you some power to go and ask for a better rate.
 
In many instances, lenders will incentivise new borrowers with low rate deals for a period of time. Your mortgage broker might be able to help you get a better rate simply by asking them for the same type of deal new borrowers are getting.
 
Be a Borrower Banks Love 
If you want to negotiate lower rates or even refinance, you need to be someone that banks will happily lend to in the first place.
 
There are a number of factors that might make your loan application far more appealing than other borrowers.
 
This might include, only asking for a lower LVR - this means your loan is a far safer proposition.
 
Have a strong employment history. If you’ve been in the same job for many years and are in a permanent position, banks are going to be very happy to lend.
 
Lenders are assessing the risk that you are going to pay them back, so having steady employment is a key indicator for them.
 
You will also need to have a good credit history. A track record of payments made on time with no defaults is vital to get the best possible rates as any blemishes on your credit history will severely impact your application, let alone your negotiating power.
 
Walk Away 
The reality is that refinancing is a real option for most borrowers and one they should strongly consider. If your bank is not prepared to budge, it might be worth looking elsewhere and walking away.
 
If you are a borrower that banks love and you’ve already asked for a rate cut, then you should really be looking at your options.
 
Your mortgage broker is always going to be your first port-of-call and they will be able to quickly and easily assess your options and match you with the right type of loan and the best possible interest rate.
 
The days of sticking with the same lender for 30 years are long gone and it is important that all borrowers are constantly hunting for the very best deal they can find - especially when it comes to interest rates. 

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