We are currently using this four step process to save our clients hundreds to thousands of dollars a year on interest charges, and the best part is that anybody can follow this easy process.
Find out your current interest rate and note whether you are on fixed or variable interest. If you are on fixed interest. find out how long you have until the fixed rate will expire.
It is important to research your lender's competition's interest rates. Surf the web or even phone various banks and find out the interest rate they would offer you should you become their client. Alternatively, give us a call and we will let you know the rates in the market place relevant to your situation.
Armed with your research, phone your bank and ask them for a discount. Let them know that you have been enquiring elsewhere and know that there are much better rates available. You will be forwarded to the bank's retention team who will negotiate your new rate with you.
There are break costs involved should you break from your fixed rate. Find out what the break costs would be and compare these to the amount of money you would save on their discounted rate. You will then need to do the calculations to figure out if the savings are greater than the break costs.
Should you refinance?
To get the most competitive interest rate available you usually need to refinance as unfortunately lenders offer their best rates to new clients. Whether this is a good solution for you depends on your situation. To discuss your options with us, give us a call.
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