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Looking for a better home loan?

If you feel like your home loan repayments will never come to an end, the key can be as simple as negotiating to get a lower interest rate. It's worth regularly reviewing your home loan to make sure you always have the lowest rate possible.  

%%Could you get a lower home loan rate?%%

- Related: [Buy a new property or renovate - what’s cheaper?](https://www.lendi.com.au/inspire/finance/buy-a-new-property-or-renovate-whats-cheaper/)
- Related: [What increases the value of property? Australians weigh in](https://www.lendi.com.au/inspire/insights/what-increases-the-value-of-property-australians-weigh-in/) 
- Related: [How long does it take to pay off a mortgage?](https://www.lendi.com.au/inspire/finance/how-long-does-it-take-to-pay-off-a-mortgage/)

Read our 5 steps on how you can negotiate a lower interest rate on your home loan. 

## 1. Ask for the same rate new customers get
Don’t be afraid to contact your lender and ask for a better deal. Speak with confidence and ask for the same rate offered to new customers. You may find lenders will be willing to negotiate to retain their customers, provided you are in a strong position with no missed repayments etc. 

If you have a good [credit history](https://www.lendi.com.au/inspire/finance/6-ways-to-improve-your-credit-score-quickly/) and have been paying off your home loan over the past 10 years with no late repayments, you could be in a strong position to negotiate. 

Negotiate the rate with your lender and you may be surprised how quickly they can be persuaded to lower your interest rate. 

Find out if you are getting the [same rate as new customers here](https://www.lendi.com.au/home-loans/search/refinance/). 

%%Have you reviewed your interest rate lately?%%

## 2. Do your research

Before to speaking to your lender about lowering your interest rate, shop around and compare what rates other lenders are offering for your situation. You can find out if there is a better rate available in mintes by using our [online home loan platform](https://www.lendi.com.au/home-loans/search/refinance/).     

Show your lender that you know there are lower rates available, this can be a great bargaining chip when it comes to asking them to lower your interest rate. 

Even so, you should shop around and see what other lenders can offer you. Your lender may be unwilling to budge and you may decide to refinance with someone else. This brings us to the next step. 

## 3. Be prepared to walk 
When it comes to negotiating, you should always be prepared to walk away. 

If your lender is refusing to buckle and offer you a competitive rate, don't be put off by the process of refinancing. 

- Related: [Your step by step guide to refinancing](https://www.lendi.com.au/home-loans/refinancing/)

Nowadays, the process of switching lenders is fairly simple and can be completed in as little as a week in some cases.  Hence, if lowering your interest rate is important to you, be ready to change lenders. 

## 4. Play the loyalty card

As already mentioned, use your loyalty as a bargaining chip if you must. Many borrowers stay with the same lender for years, and if you have a good history with them, it can help when it comes to negotiating a lower rate. 

Prior to asking for a lower interest rate, review your position and check that you have been making your repayments on time and that your LVR ([Loan to Value Ratio](https://www.lendi.com.au/guides/lvr/) has gradually been getting lower. 

With this, you now have a current timeline of your loyalty and proof of being a reliable customer. This can be very helpful.

Find out if you have the [lowest rate possible here](https://www.lendi.com.au/home-loans/search/refinance/). 

%%Afraid you're not getting the best home loan?%%

## 5. Make sure you're the ideal borrower
Be the borrower banks love to lend to and give yourself the best chance of nabbing that low rate. Lenders look for a number of key things before calculating your interest rate. 

Lenders want borrowers with: 

- A low LVR - An LVR over 80% may hinder your negotiations. 
- Good credit score
- No missed repayments or defaults
- Steady employment

Be aware of the factors that may hinder your negotiations: 

- The type of customer you are e.g. self-employed, investor, non-resident 
- Missed paying repayments 
- Poor credit score
- If you owe over 80% of the property value 

Hopefully, with these 5 steps you are on your way to negotiating a lower interest rate on your home loan. 

## Got a home loan question? Just ask!
We're here to help. Get free expert advice at a time that suits you. Choose a time to chat with a [Home Loan Specialist here](https://www.lendi.com.au/book-appointment/). 

*The information in this post is general in nature and should not be considered personal or financial advice. 
You should always seek professional advice or assistance before making any financial decisions.*

*$2,190 figure based on Lendi Home Loan Index. Calculated by comparing customers' previous and new interest rates and assuming no interest rate rises and good account conduct. This does not include customers consolidating debt or accessing equity, and does not account for changes to the overall lending amount or total loan term.