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A new survey has found that a third of Australians have successfully negotiated a better deal on their mortgage.
The survey by finder.com.au revealed that 33 per cent of the 1,286 respondents managed to successfully bargain for a lower interest rate on their home loan.
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From the 43 per cent of home owners that attempted to negotiate a better mortgage rate, 77 per cent were successful.
The survey also reported that 45 per cent of respondents were unaware that they could bargain their way to a better deal, and 12 per cent were given a discount on their rate without asking.
“Don’t settle for the advertised rate. Have the confidence to ask for a lower rate, and reap the reward that will come with making smaller mortgage repayments.
“If you don’t ask, you don’t get,” money expert at Finder Bessie Hassan said.
“Right now, unless your mortgage rate has a three in front of it, you could be getting a better deal. If your lender won’t give you a discount, it’s time to jump online and compare.”
Respondents from Generation X were most likely to receive a discount (38 per cent), followed by Generation Y (32 per cent), with Baby Boomers being the least likely to bargain for a discount (28 per cent).
Western Australians were most successful at negotiating a better deal (39 per cent) while Tasmanians were least successful (26 per cent).
When asked what feature, aside from interest rates, is most important when choosing a loan, 36 per cent of the respondents cited “fees”, followed by “ability to make repayments” (28 per cent), “offset account” (18 per cent), “redraw facility” (13 per cent) and “portability” (5 per cent).
“When reviewing home loan options, fees trump nearly all else,” Ms Hassan stated. “However, it appears Australians are becoming savvier when understanding the value of making additional repayments and using a linked offset account.”
