With the spring property season, the lenders are trying to attract people with discounts. The level of discounts has been increased according to Fawzi Jreige, mortgage broker. The lenders are very aggressive to catch customers and are even ready to go beyond their publicly announced discount rate.
Tips to get the best discount
To gain market share, banks and lenders are willing to provide an extra base of discounts. How to use this opportunity? How to haggle and negotiate your loans?
a) Research about the market average discount and individual discount rates.
b) Talk to many lenders and use the value of one against the other.
c) Take all your financial needs to the lender to get a large discount.
d) Keep your credit history clean.
e) If you are not the person to haggle, get the help of brokers.
Percentages in the market
Citibank is providing 1.4% from SVR of 6.19% of the borrowing capital is more than $500,000. HSBC is offering 1.05% off from 5.95% SVR with a minimum capital requirement of $500,000. Westpac advertises 1% off with St. George. Lenders are ready to go even up to the extent of 1.15% though they do not indicate this through their advertisements.
Source: http://www.dailytelegraph.com.au/money/savviest-home-loan-shoppers-winning-discounts-of-1-or-more/story-fni0cms3-1226751487398