“Hello, my name is [Your Name] and I’d like to speak with a customer service representative about my home loan interest rate. I have been a home loan customer for X years and would like to request an interest rate reduction.”
“I’ve seen that you are currently offering new customers an interest rate of X.XX%, and this is XX% more than I am paying. I do not think it is fair thatI am paying so much more as a loyal customer.”
“I have proven myself to be an ideal customer because I have never missed a mortgage repayment and have reduced my LVR to XX% over the years [insert your reasons]”.
If they won’t budge…
“I’ve done some research online and saw that your competitor [Lender Name] is currently offering refinancers, like me, an interest rate of X.XX%. If you will not reduce my rate, I am prepared to switch to this lender.”
If they still won’t budge…
“I’d like to request a mortgage discharge form then to begin the process of refinancing. If you won’t take care of a loyal customer like me, why should I keep my home loan with you?”
The cost of refinancing
You will need to be certain that you are comfortable refinancing if it does come down to it. Hopefully your lender will budge on your rate before you need to pull the trigger, but if you have to switch lenders, you should now have a list of potential lower rate options to consider.
That being said, be aware that switching home loans can be a costly exercise, so make sure you find out all the fees and charges involved to exit from your existing loan as well as setting up the new one.
Also ensure that if you refinance, you don’t end up extending your loan term as this can result in paying tens of thousands of dollars more in interest.
Use our Refinance Calculator now to see how much more you may save by refinancing to one of the competitive home loans from your research.