Your mortgage needs to work for you and your financial needs! Negotiating can help you secure the best possible deal and navigate home ownership with confidence.
By learning how to negotiate your mortgage terms and fees with your lender, you can understand your rights and get better value for your money. This can make it much easier for you to budget well and reliably meet minimum repayment requirements.
Tips for negotiating your mortgage deal
Looking for some tips and tricks to help you negotiate your mortgage deal effectively? Here they are!
Check on your financial position
Before you try to negotiate, you need to determine whether your financial situation is conducive to a better deal.
Are you an ideal borrower with a great credit history, a reliable regular income, and a loan-to-value ratio of 80 percent or less? Are you in stable, full-time employment, and are you making principal and interest repayments? Have you avoided missed repayments, or have you paid extra off your loan?
The stronger your financial position, the more likely it is that your lender will be willing to work with you and consider negotiating better mortgage terms and fees to avoid losing you as a customer.
Know your lender’s rates
Your loan package is probably not the only deal your lender offers. Evaluating the rates your lender offers on other loans can give you a tool for negotiation.
Does your lender provide more competitive rates for newer customers? Is there another loan package with more favourable mortgage terms? Do you research, and use what you learn to show your lender why they should offer you a better deal.
A strong understanding of your lender’s own rates and fees can put you in a good position to negotiate realistically for the best results.
Compare your rate to other loans
Similarly, it can be helpful to compare your mortgage terms and fees to those offered by other lenders in the market.
Have you found another lender offering lower fees or a lower interest rate? What about extra loan features or a better comparison rate? These features can be great bargaining tools to show your lender what they have to compete against.
The more you know about the broader loan market, the more you can apply your knowledge to secure the best mortgage deal with your current loan provider.
Negotiate with confidence
Often, confidence is the key! You need to do your due diligence, and then work to negotiate your loan as clearly and confidently as possible.
What makes you such a great borrower? Why should your lender be interested in giving you a better deal? What do you plan to do if you can’t negotiate better mortgage terms? Answering these questions can help you understand what you bring to the table, as well as help you plan for any eventuality.
When you are confident and polite about the way you negotiate, you are much more likely to achieve your desired outcome.
Looking for more advice and guidance when it comes to negotiating your mortgage? We can help! Contact Our Top 10, the best mortgage broker Melbourne has to offer.