How to save thousands of dollars every year on your mortgage payments!
If you have a loan for your home or investment properties, you could be paying thousands of dollars too much in your mortgage payments.
Although the banks are tightening their belts and making it harder to borrow, especially for investments and developments, they are still very keen to keep your business that they already have.
Banks will go out of their way to retain business and many now have specialised “Customer retention officers” whose primary job is to ensure you don’t refinance away from them. Often if you advise your bank that you are considering your options and talking to other banks, they will offer to renegotiate your mortgage and lower your interest rate to keep you as a client.
This may sound a bit too good to be true but a few weeks ago, I rang one of my banks (one of the big 4) and told them I wasn’t happy with my monthly payments and asked what they could do to help me out. Within 5 minutes on the phone I was offered a reduction of $310 per month in interest, that saves me $3726per year, just on that loan.
Given that I have several other loans with different banks – I never like to keep all my eggs in one basket – I proceeded to call another 3 banks with which I had mortgages and the results were similar. Every one of them dropped their interest rate on the spot. I did not have to complete any forms or “qualify” in any way.
Of course this will only work if you have a variable loan. If you have fixed your interest for a set period, you will not be able to negotiate during that period.
Do some homework to find out what is being offered by competitor banks and then do yourself a favour and make the call to YOUR bank – you may well be surprised how much money you can save through a simple phone call.
If you need any Real Estate advice or help with your investment properties or you are just looking for more strategies to make your properties perform better financially, call me today at Centurion Real Estate on 9454 2237. I am an active investor in Perth and always happy to share my personal experiences with fellow investors.