Interest rates are at historic low levels but how do you know if you’ve got the lowest rate?
Firstly, it’s important you know most banks have “under the counter” rates that are lower than the advertised interest rate.
Whether you have a home loan, investment loan or business loan, you should always try to negotiate a lower interest rate for these loans.
Make sure your broker is independent
There are lots of brokers out there and you may have a broker now. So make sure they are independent and have no strong ties to any particular bank.
You should push your broker to negotiate with your current bank for a lower rate. If the broker isn’t independent, they will be reluctant to do this – so it’s probably time to find another broker.
And did you know brokers get paid by the bank to give you on-going support and service? If your broker hasn’t talked to you for ages, contact them and make sure they do regular reviews of your loans – they get paid to do this.
Experience with negotiating is essential
There are many things the banks look at when you ask them for a lower interest rate on your loans.
Things like your total loan amount, value of your property, other products you have with them and other banks interest rates at the time.
So it’s essential your broker has the right experience to understand how this works and knows the best way to negotiate with your bank.
It’s hard to know you’ve got the best deal
There are hundreds of different loan products on the market but no one has time to go through all that information.
It’s good to shop around, and you can use comparison websites, but because lenders call loan products by different names, it can get very difficult comparing apples with apples.
So it’s hard to know you’ve got the best deal. It’s worthwhile working with an independent and experienced broker to save time and get a well-rounded understanding of the advantages of each loan product.
We go a few steps further to help you make the right decision
At Craig Tracey Lending we take time to listen and understand you then we compare all the loan products in the market for you. But what make us different to other Brokers is we go a few steps further to help you make the right decision.
Your borrowing plan gives you all the information you need
We give you all the information you need in simple language that is easy to understand – we call it your “Borrowing Plan”.
Your borrowing plan is personalised to your specific needs and shows you how to save thousands of dollars in interest, fees and charges over the life of your loan.
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