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.”
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.”
“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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