Getting BIG discounts on your loan.
Pick up the phone and ask your bank for their best discount, then call us!
Similar to the fact that everybody sitting in the same airplane travelling to the same destination are not paying the same fare, there is a standard home loan rate that most people are charged and then there are special discount deals!
Here are some of the ways that our mortgage brokers will assist you to achieve a special deal with the lowest rate possible from a large diversified group of over 25 of the most popular lenders in Australia, all on our panel. Discounting lenders’ rates is all about negotiation and the borrower who is in a strong position has the greatest opportunity for a large discount. Here are some negotiating points to help.
1. Watch your LVR (Loan to Value Ratio)
Loans with high LVR’s are riskier business propositions for the lenders and they penalize them. Sub 80% loans achieve the greatest discount offers, so our brokers might talk to you about some possible better ways to structure all your loans. Lender
2. Larger loans achieve the greatest discounts
Once we have analysed your personal financial circumstances we might suggest that we bundle some of your other loans together in order to put the strongest argument to the lenders when negotiating your deal. Lenders do have cutoff benchmarks that we loosely work around.
3. Good and reliable income with ample affordability
The borrower who is cashflow strong is a low risk and therefore a desirable customer to any lender. Structuring your application well, particularly for the self employed, and advancing to the right lenders gives you your best opportunity for a better loan offer.
4. Special offers
Our brokers are kept up-to-date with special offers made by lenders who are looking for extra business. The lenders all have different cashflow cycles just like any business does. Therefore their propensity for larger business volumes rises and falls with their own supply of funds. When short of funds their rates remain within market standards. When over supplied they are more than happy to offer discounts that outweigh their competitors in order to win the business. The key is to get the largest possible discount and have it locked in for the life of the loan.
5. Check your credit report
Make sure nothing incorrect is on your credit file which could see you miss out on the best possible deal. Reports are available for free from the credit reporting agency or give us a call and we will have it checked for you. Most lenders operate with a credit scoring system which leaves you no room for negotiation if your track record is not great. Errors through the telcos and department stores quite often appear on the reports so it is a good thing to have checked if you will be applying for a loan.
6. Be prepared to walk
Banks try and win new business by offering their largest discounts to new borrowers whilst hoping that their existing clients are too lazy to move. Sadly, they are historically and statistically right! Not that we are all lazy in our everyday busy lives but rather it is the inertia of change with the perceived hassle that goes along with that. But if you are not prepared to walk you will not get your best deal because the lenders hold out and hold on. So make your bank share their love, or break up! Let our brokers have all the bank hassle and do it all for you, it’s a win win!
The greater your market knowledge ; and the larger the lender choice; and given a propensity or willingness to change; and the better your negotiating leverage, the better will be the deal you get. At Multi Choice our mortgage brokers do this negotiating everyday for each loan we put forward to the lenders on a case by case basis, which forces the lenders to compete and put their best foot forward in order to win the business in a silent auction type process. That’s how we achieve the best results for all our clients.
At Multi Choice our tip is to talk to a mortgage broker who knows the current market, is experienced, and has long term relationships with the lenders which enables them to liaise with the lenders on your behalf to ensure you are getting the best possible home loan deal for your individual circumstances and needs.
Speak to a broker today
Having a Multi Choice broker negotiate finance on your behalf is the smart way to go as we look to save you time, stress and money.Book a free appointment