Negotiating interest rates
Ask for a better deal when your situation changes or if you’re still paying the full standard variable rate. You may be much better off with a banking package that provides a reduced interest rate. Anecdotal evidence shows that non-bank lenders in particular are willing to negotiate on interest rates.Home loan packages
About two in three members with a mortgage have a home loan package. But there can be high fees; about one in three surveyed pay between $301-$400 per year, and less than one in five receive the package for free. Members with mortgages through credit unions are much more likely not to pay anything for their package; in fact, only every second credit union customer pays a package fee. More than half of our members with a home loan package believe it’s good value, but one in five feels it’s not.
Consider basic variable loans, too. Many now come with features that were once only available with a standard variable rate, such as a redraw facility.Early repayment fees
One major drawback with switching your home loan
is the high cost involved. Many have an early repayment fee charged up to the first five years, which can be more than $5000 on a $250,000 loan. About one in three members surveyed say early repayment fees on their home loan are either somewhat or extremely high; about one in five believe they’re about right, and only one in 10 feels they are somewhat or extremely low.
Half of the survey participants who have a home loan with a non-bank lender say their early repayment fees are somewhat or extremely high – a view shared by just under one in three participants who had their home loan with a bank, and about one in 10 who had theirs with a credit union.