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Sharpen your negotiation skills and save yourself thousands

One in two Australians consider themselves to be good negotiators but they are failing to bargain successfully with their banks.

We recently surveyed of more than 1,000 Australians and the results show 51% of respondents consider themselves to be good negotiators but just 41% of those with a home loan had ever successfully negotiated a better interest rate with their bank.

“It’s clear Australians are not confident in their negotiation skills but by failing to bargain successfully with their banks, they are throwing away thousands of dollars every year,” says David Hyman, co-founder and managing director at Lendi.

“This is such a wasted opportunity, especially in an environment where living standards are being squeezed by low wage growth and rising costs.”

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The survey also showed 79% of respondents believe interest rates will go up in 2018 and more than half (57%) said they do not expect their standard of living to improve this year.

“Australians are anticipating a rise in interest rates this year but there is a lot they can do to soften the blow – they just need to realise their bargaining power and sharpen their negotiation skills,” says Hyman.

“Before going to your bank to ask for a better rate, it’s important to do your research and have your information in order. Generally, if you have a loan to valuation ratio (LVR) of less than 80% you’ll be in a good position to haggle.”

Lendi’s tips for negotiating with your bank:

  1. Get organised and make sure you know what interest rate and fees you are being charged.
  2. Then look at your loan to valuation ratio and your remaining loan term.
  3. Use that information to check out what is on offer from your current lender and their competitors - this will give you a realistic insight into what you can ask for.

“If don’t have time or want to negotiate directly with your bank, using a home loan specialist is a convenient way to short-circuit the process - just make sure they are looking at loan options available across the whole market,” adds Hyman.

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Tags: refinance, low interest, interest rate, david hyman

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Important legal stuff

COMPARISON RATE WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.
Lendi is the trading name of Lendi Pty Ltd, a related body corporate of your licensed credit assistance provider, Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence Number 442372). We will never sell your email address to any third party or send you nasty spam, promise.
EXAMPLE: This example is current as at 20th October 2016. A Click Loans Online Principal and Interest Loan of $150,000 over 25 years has monthly repayments of $767. This is calculated based on the interest rate of 3.69%, comparison rate of 3.69%, upfront fees of $0 and annual fees of $0.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
Lendi is a privately owned and operated Aussie business. Our mission is to provide Aussies with the right experience when choosing a home loan from our panel of major and non-bank lenders including Click Loans which is a wholly owned subsidiary of Auscred Pty Ltd and a related body corporate of Auscred Services, your credit assistance provider. Although Lendi compares over 1600 products from over 30 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 40% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. We have an independent and founder led board.
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