When the Reserve Bank of Australia (RBA) keeps official interest rates on hold, many homeowners assume their mortgage rate is set in stone. But here’s the good news: you don’t have to wait for the RBA to act to save money on your home loan. In today’s competitive lending environment, many banks and lenders are offering special rates and discounts—if you know where to look, or better yet, if you ask your mortgage broker to do the shopping for you.
Lenders Competing for Your Business
Right now, lenders are fiercely competing for new customers. Some are offering headline rates as low as 4.75% p.a. (comparison rate 5.42%) for owner-occupiers, while others are providing cashback offers or waiving fees for refinancers. Even if your current lender isn’t advertising a deal, they might be willing to negotiate to keep your business if you ask.
Example:
- Lender A: 6.20% p.a.
- Lender B (Special Offer): 5.69% p.a.
How Much Could You Save?
Let’s crunch the numbers on two typical loan sizes over a 25-year term:
1. $500,000 Mortgage
- At 6.20% p.a.
Monthly repayment: $3,283 - At 5.69% p.a.
Monthly repayment: $3,127
Monthly saving:$156
Annual saving:$1,872
2. $1,000,000 Mortgage
- At 6.20% p.a.
Monthly repayment: $6,566 - At 5.69% p.a.
Monthly repayment: $6,255
Monthly saving:$311
Annual saving:$3,732
(Calculations based on principal & interest repayments over 25 years)
How to Unlock a Better Rate
- Shop Around: Don’t assume your current lender is giving you the best deal. There are over 30 lenders in Australia, each with their own specials.
- Call Your Broker: Mortgage brokers have access to a wide range of lenders and can negotiate on your behalf, often securing rates not advertised to the public.
- Ask for a Review: Even if you’re happy with your lender, ask them to review your rate. Mention competitor offers—loyalty doesn’t always pay in banking!
Real-World Example
A client of ours with a $750,000 loan could reduce their rate from 6.15% to 5.75% simply by asking us to negotiate with their bank. The result? A saving of over $2,195 per year—without switching lenders.
The Takeaway
Even if the RBA doesn’t move, you can. With lenders offering sharp deals to attract and retain borrowers, a quick call to your mortgage broker could put thousands back in your pocket every year. Don’t wait for rates to fall—take control and see what you could save today.
See how much you can save by calling 1300 30 67 67 or fill in the enquiry Form here
