Low Interest Rates, Negotiate With Your Lender

Take advantage of low rates.

So, you are the position to continue making repayments to your loan during this period and haven’t needed to defer or change your loan. How can you take advantage of low interest rates in the market right now? The best thing for you to do is actually talk to your lender negotiate the interest rate.

If you’re in the position to continue making repayments on your loan, then this is the best time to actually re-negotiate rates on your existing loan. The reason for that is that banks are keen to keep their clients, and they’re going to provide huge discounts on their actual interest rates.

HOT TIP #1

The key when negotiating interest rates is to make sure that you understand what the ‘End Rate’ is going to be. Banks are going to be fancy and confusing by giving you say a 1% or 2 % discount  off the standard rate  and you are left wondering what your rate will be.  Or they will be even more fancy and use words like Basis Points. Basis points is just another way for the banks to explain what the interest rate discount is actually going to be. That information isn’t as quite a as important as what the end rate is going to be, because the end rate is the interest rate that will actually be charged on your loan.

So you want to make sure you know what that rate is and how that’s going to affect either your repayments or how that’s going to help you accelerate paying off your loan even quicker.

HOT TIP #2

For the most part, discounts will be for the life of the loan. However, during this instance they may provide you either a six month or 12 month discount. The best thing to do would be to negotiate this too. Ask what discount they can offer you for the remaining term of your loan.

Don’t be afraid, just ask the question you will be surprised with the offers you will receive.

The Growfinity team.