With official interest rates trending downward, home owners should take the opportunity to call their lender to ask for a better deal. Even a small interest rate reduction means a potential savings of thousands of dollars, but is a simple phone call really enough to get you there?

In 2020, common advice for home owners considering the competitiveness of their loan settings is that your interest rate should have a 2 in front of it.

If you want a better deal on your mortgage, there are basically 2 options:

1. Call your bank and ask them to match the new rate; or
2. Contact your broker and ask them to review your loan.

And although the first option is commonly recommended, lenders aren’t always so obliging when it comes to rate-matching to get you a more affordable mortgage. As an existing client, it can be disheartening to see your bank offer new customers a lower rate to the one you currently have.

Lenders regularly try to ‘win’ new customers by offering low rates. It is a great acquisition strategy. But if they refuse to match your current rate to this new offer, you can always contact a broker and refinance with a lender who is hungry to win your business.

Mortgage brokers, on average, have access to a panel of 34 lenders and this creates competition amongst lenders. Mortgage brokers are also in a position to offer you a more in-depth and customised level of service. This can allow them to find their customers a mortgage product that may better suit their current needs, wants and circumstances.