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3 reasons you can get a better home loan from a lender that’s loyal to you

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Very few Australian lenders offer their best deals to loyal, long-term customers. But the ones that do could be worth sticking with.

Sponsored by Unloan. The first home loan with an increasing discount.
With Unloan, you don't just start with a low variable rate — you also receive an extra 0.01% p.a. discount every year for up to 30 years.

Most borrowers buy a home, get a mortgage, move in and forget about their home loan. It's just a big debt they pay off until it's gone. Borrowers who actually look at their interest rate and see what other lenders are offering often end up shocked: a lender's lowest rates are typically reserved for new customers.

But it doesn't have to be that way.

1. Unless you've signed up recently, your lender probably isn't giving you its best deal

While it might seem like good business practice, your lender is under no obligation to give you its best deal.

This is why you might see a lower rate on your lender's website for the exact same type of home loan as yours. The product might even have the same name.

Try it for yourself. Check your home loan's interest rate, then visit your lender's website. What is your lendering offering to new customers? Are you missing out? It happened to me once!

Your lender may be counting on your loyalty. And while you could definitely call your lender and ask it to put you on its lowest rate, you'll likely find a better deal elsewhere on the market.

2. There are lenders that offer one rate for old and new customers

There are a handful of lenders that aim to treat loyal customers the same as new ones. A lender may promise a "rate match" or have a single rate for all customers, old and new.

Either way, the effect is the same. With these lenders, you're less likely to wind up on a higher rate than new customers as time goes on.

Unloan is one of the few lenders that offers this to borrowers. This online lender promises "one simple low rate" for all borrowers on the same type of loan.

3. Some lenders even reward you with discounts as you pay off your loan

Lenders offer discounts to home loan customers for various reasons. Sometimes they simply discount their standard variable rate offer to something more competitive.

Some lenders give you discounts if you bundle an investment loan with an owner-occupier loan. Green home loans give discounted rates to borrowers with eco-friendly, energy-efficient homes.

And some lenders even give you discounts just for hanging in there. This can take the form of interest rates that get lower as you repay the loan. Unloan gives borrowers an automatic rate discount of a single basis point per year.

This means a discount of 30 basis points over 30 years.

If your lender isn't rewarding your loyalty, it might be time to refinance to one that does.

Compare Unloan home loans

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Name Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Principal & Interest20% min. depositOwner-occupier
Interest Rate
5.99%
Comparison Rate
5.90%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$900
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Principal & Interest20% min. depositInvestment
Interest Rate
6.29%
Comparison Rate
6.20%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$929
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