How to get a discount on your home loan

Want to get the best possible deal on your home loan? Here’s how you can save money on your mortgage.

Is your home loan interest rate significantly higher than the interest rates available on new home loans? If you’re not getting the best possible deal from your mortgage lender, it could be time to negotiate a better deal.

Find out how to get a discount on your home loan

Why you need to ask for a discount

If you’ve been paying off your home loan for a couple of years or more, there’s a very real chance that your mortgage is more expensive than it should be. Luckily, it’s easy to negotiate with your lender to secure a discounted interest rate and save thousands of dollars over the life of your home loan.

Most Australians put off asking for a better interest rate because they’re either worried about having an uncomfortable conversation or because they’re simply unaware they have the right to do so. But what you may not realise is that it’s a lot cheaper for the lender to keep you as a customer and give you an interest rate discount, than it is to lose you and go and find a new customer.

So you really do have everything to gain by phoning your lender and asking for a better interest rate – you could save thousands of dollars.

Negotiating a discount on your home loan

Here’s how you can get a better deal on your home loan.

  1. Find out your interest rate. Look at your home loan statement or go onto Internet banking to check your current interest rate. You can then find out whether that rate is competitive or not by visiting our home loans comparison guide. It’s also a good idea to jump onto your lender’s website and find out what they’re offering new customers – it will most likely be a lot better than the interest rate they’re offering you.
  2. Gather information. Have you been making your repayments on time? How long have you been with your bank? Do you have other loans or other products with the lender? Loyal and reliable customers have more bargaining power when they ask for a discount.
  3. Call other lenders. Don’t be afraid to pick up the phone and contact a few other lenders. Find out what they’re willing to offer you and whether they can save you money.
  4. Make the call. When you’re ready, phone your lender and try to negotiate a better deal. Most lenders have teams of people that deal with these enquiries every day.
  5. Wait. Most lenders will arrange to call you back later. This allows them to assess how much of a discount they’re going to offer you, or perhaps work out whether you could be suited to converting to another product.
  6. Start saving. If a discount is granted, once you sign the paperwork it’ll usually take effect immediately, so you could start saving money on your next monthly repayment.

The pros and cons of getting a discount vs refinancing


  • There's no need to fill out the paperwork for a new loan
  • You don't have to pay exit fees for the old loan and upfront fees for the new loan
  • It's quicker than refinancing


  • You can't get access to new loan features
  • If your lender has bad customer service, getting a discount still won't solve this
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HSBC Home Value Loan - (Owner Occupier P&I)

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