Master Builder Financial Services’ clients have been able to renegotiate their mortgage interest rates by allowing their MBA credit advisor to do this on their behalf.
When your broker organised your mortgage, it would have been very competitive at the time. Since then, banks have been raising mortgage interest rates steadily – things have changed recently with the Reserve Bank dropping the cash rate. Banks have also started to loosen their lending parameters, meaning they are able to become more competitive, lend high amounts and offer discounts and rate reductions.
By providing your broker some updated details on the state of your mortgage, your broker can engage your existing bank to request they lower your interest rate.
Reasons to do it via your broker and not with the bank directly:
- The bank knows it’s in the broker’s interest to move you to a different bank which is more competitive as it benefits the borrower as well as the broker because the broker will get paid a commission. For this reason, the bank will take notice and know that losing your mortgage is a probable outcome if they don't.
- The bank also knows that the broker knows the details of your loan and already has contingency banks and loans in place in case the bank does not express a willingness to negotiate.
- The banks bet on peoples’ They know if they refuse the discount to the consumer, it’s unlikely they will go to the trouble of researching and finding another lender. A broker, however, makes this process as easy as possible for the consumer, which is why a broker’s call is much more likely to be taken more seriously.
What if you obtained your loan directly from a bank? It’s unlikely your bank manager will approve the discount as they already have your business. It’s wise to go to a reputable broker, like Master Builders Financial Services, who will attempt to obtain a discount from your existing bank before approaching another.
Please note that this environment is not always available as banks go through cycles of acquisition and retention. If you would like more information, call MBA Financial Services on 1300 137 539.
Please note: This information is general in nature and not to be considered specific advice of any kind as your situation has not been taken into consideration.