Newspaper article Daily News (Warwick, Australia)

Why Home Owners Won't Haggle to Secure a Better Mortgage

Newspaper article Daily News (Warwick, Australia)

Why Home Owners Won't Haggle to Secure a Better Mortgage

Article excerpt

INTEREST rates have never been lower and despite the fact thousands home owners could save by shifting lenders to get a better deal, most have never even asked for a cheaper rate.

While mortgage repayments are often the biggest expense in Australians households, around 65 per cent of us have never asked our lender for a cheaper rate, new research shows.

Yet 82 per cent of those who do demand a better deal get it, according to the finder.com.au survey of 2033 Australians. Around 18 per cent of those surveyed did make the switch to another lender for either a cheaper rate or a mortgage that better suited their needs.

Home owners are in a good position to get a better deal on a mortgage, according to REA Group Chief Economist Nerida Conisbee.

"It is a good idea to negotiate for a better mortgage deal. Owner occupiers are considered one of the safest borrowers for banks and they are therefore more likely to provide a better deal to this group of buyers," she says.

"Interest rates are now the lowest they have ever been and borrowers can do very well getting a deal in this market," she says.

Broker Will Foster from Foster Finance says Australians just aren't used to haggling.

"I think it's a cultural thing, I don't think we're used to haggling for things in a retail environment. And I think also people are a little bit scared of banks because they are big institutions and they don't know the terminology to use or how the inside things at the bank operate," he says. "I think it's just in the too hard basket a lot of the time...when you're getting a home loan the end goal is not to get a home loan, it's to get a house. Once it's done people do tend to set and forget it. They're just very happy with their house and (they're) not worried what they're paying for it," he says.

How hard is it to switch to another loan?

It can be difficult, but this is also where a mortgage broker can help says Foster.

"It can be complicated if you don't know the system. …

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