One mortgage mistake costing Australian borrowers thousands each year
Key takeaways
- 37% of Australians say they've never asked their lender for a lower mortgage rate.
- With three rate hikes in 2026, borrowers are missing out on hundreds of dollars a month in savings by not getting a better deal.
- What's next: Compare mortgage rates and call up your lender to see if you can get a better deal. If not, refinance.
When was the last time you called your lender? Statistically, probably never. But you can, and you probably should.
37% of Australians tell Finder they've never asked their lender for a better deal. Only one in ten have tried this year.
25% haven't done so in over a year. This is worrying, especially given that we've seen three interest rate hikes already.
Millions missing out on mortgage savings
The average Australian home loan rate is almost 7%. But many lenders have rates around 6%, or even below.
Switching to a lower rate can save borrowers hundreds of dollars a month, or thousands a year.
The worst your lender can do is say "no"
Most Australians aren't even aware that you can call your lender up to ask for a better deal. But you can.
The worst your lender can do is say "no." But they might play ball.
The fact is, lending is a competitive industry. Your lender wants your business. But they rarely reward loyalty.
Many lenders offer lower rates to entice new borrowers, while keeping existing customers on slightly higher rates.
In this scenario, getting a better deal is often as simple as calling up your lender, pointing out the lower rate you can see on its website and asking for it.
I do this every year when my lender sneakily sticks me on a higher rate. It's the cheapest phone call I can make.
How to make sure you're on the best rate possible
- Check your current home loan interest rate.
- Check your lender's website to see if it is offering a better rate for new customers.
- Compare home loan rates from across the market to see if yours is still too high.
- Call your lender and ask them to either give you its lowest rate or match a rate from a competitor.
- If your lender doesn't agree, ask about the mortgage discharge process. Because you're going to switch.
- If your lender still doesn't come to the table, it's time to follow through on your threat and refinance your home loan.
Sources
Ask a question