How to Get the Best Deal Out of the Banks

Graeme Salt

Good mortgage brokers get a kick out of negotiating good deals for their clients.


 


One of the best parts of a brokers’ job is knowing which bank have got an appetite for a loan and hence how flexible they will be with their rates. Many banks have published rates that they show the public – but good brokers know which banks will be prepared to negotiate a rate below these rates.


 


Last week, I had one of my regular catch ups with one of the banks. We use this to keep abreast on what the banks are thinking and how generous they will be with customers. During our meeting, this banker and I were commenting on how competitive the banks are with each other and hence, how much they will drop their rates to get a home loan customer.


 


Now, for the right client, the banks are discounting way more than one per cent from their Standard Variable Loan. As a result, for some clients, I am getting variable rates about 4.75 per cent.


 


Lately, from my experience, the banks which have been most prepared to drop their rates have been Macquarie and Homeside.


 


Because brokers are normally accredited with many lenders, they are able to shop around on their clients’ behalf, targeting whichever lender is hungriest to arrange a home loan. The home owner gets a trifecta:


  • They get the most competitive rate
  • This is arranged from the comfort of their armchair – the broker does the leg work
  • They don’t pay a cent for the service - the broker gets a commission from the bank.