Monthly Archives: August 2016

We all know that Australian Banks are very keen to make huge profits, however, did you know that in many circumstances it is more profitable for a Bank to reduce the interest rates on a Home Loan to retain an existing customer rather than incurring the significant cost to replace a customer.

The amazing thing is … MOST CUSTOMERS DON’T ASK !!!

What do you need to do …

Step 1:    Know your current interest rate

Step 2:    Research what other Banks are offering (including offers to cover the costs of refinancing)

Step 3:    Call the phone number noted on your loan statement (i.e. NOT your Bank Manager) and advise the Bank you are considering leaving & quote the lower interest rates you can achieve with other Banks.

Step 4:    Ask the Bank if they will match this offer to retain your business.

PLEASE REMEMBER: If you have a Mortgage Broker please contact them first, as they are experienced with these negotiations & may have access to even lower interest rates not advertised publicly by the Banks. Your Mortgage Broker can use these lower interest rates to achieve even greater savings for you.

The RBA Board has reduced the Official Cash Rate to a new record low 1.50% in the hope this will stimulate the Australian Economy to combat the current low levels of inflation.  

The RBA is hoping Australian families will start spending more on ourselves if we are paying less interest to the Banks for our Home Loans.

The question is … Will the Banks play their part by passing on this rate cut in full ???