82% of Australians who ask for a mortgage discount get one
Negotiating could save you thousands over the life of your loan.
Australian mortgage holders are missing out on potential savings when they don't bargain for lower interest rates on home loans, according to new research.
A national survey by finder.com.au found that by not requesting a better rate, almost two-thirds (65%) of Aussies pass up the opportunity to secure a discount on the size of their loan, while 82% of borrowers who requested a better rate, got one.
Of the 2,033 survey participants, almost one-fifth (18%) revealed they had switched financial institutions to obtain a more desirable rate.
Even a modest rate cut could pocket new home owners thousands in potential savings.
For example, a 0.10% reduction (off the average standard variable rate of 4.93%) could shave almost $8,000 off the life of the average Australian home loan ($360,100).
Earlier this month the RBA cut the official cash rate to a record low 1.50%, however, many financial institutions failed to pass on the full 25 basis point cut to customers.
Breaking down generational tendencies, millenials (Generation Y) were the likeliest (44%) group to shoot for a discount, enjoying a success rate of 68%.
Baby boomers were equally fortuitous, with just 8% of those seeking a cheaper rate denied a deduction. Almost one in ten (9%) Gen X'rs swapped lenders to broker a better deal.
Despite more men (38%) petitioning their banks for a lower rate, it seems women are more successful negotiators.
South Australians were the most eager to inquire about a discount or switch lenders (57%), Tasmanians had the greatest success rate (95%) and NSW residents were least fortunate (73%).
ACT borrowers were most complacent, as more than half (58%) admitting they hadn't attempted to negotiate a lower rate home loan.
If you're buying a new home or investment property, thinking about refinancing or just looking around for potential deals, compare a huge range of lenders to find the mortgage and rate that best suits your budget.