Mortgage Minute – Negotiating Rates

TRANSCRIPTION

How to negotiate interest rates with the bank.

Are you able to negotiate your mortgage rates? Well, it’s a funny scenario. What you actually see on interest.co.nz or mortgage rates or you see on those billboards or TV is interest rates that the bank is advertising. Their carded rates. They might be advertising their special rates and what you actually might not be aware is you actually quite often can negotiate on those rates. Maybe not always on every term. So you might be able to negotiate on the one year or the two year rate, but it’s very¬† likely that you can get discounts below what you’re seeing advertised and potentially for refixing or especially if you’re swapping banks, you’re able to get some cash back and then what you should also be looking at is are you using the right bank products and are your loans set up using interest rate averaging, AUS, and revolving credits or offsets. There’s a lot more to it than just setting up a mortgage with the bank and forgetting about it. So work with a free mortgage advisor like iRefi and make sure you understand your different options.