If you have a mortgage with a fixed interest rate and where the maturity is about to expire or if you have a loan where the interest rate is variable, you are in a position where the interest rate can be negotiated. This of course applies even if you are going to take out a new mortgage. Compared to other types of loans, the bargaining potential is much greater for mortgages. But to get the best interest rate, it goes without saying that you are negotiating properly.
A lender can hardly be interested in lowering an interest rate if a customer comes in with a bad attitude and starts to make unreasonable demands. Or if this customer is just generally unpleasant. We should therefore have good tips that can help you get as low interest rates as possible.
1. Make sure you are prepared
Going into a bank office and starting talking to an official without having any control over the situation is not a good idea. You will then not know if the offer you are getting is good or not.
To find out the interest rate situation and other similar information, the Internet is a good place. There are many sites like this where you can find the list rates that the lenders offer. These can give you a good idea of the price. Furthermore, there are forums and the like where bank customers print out exactly what they have managed to negotiate for any interest rate.
The loan institutions’ own websites are also the good places to find information that might help you. Then it is never wrong to talk to people you know before. Maybe there are friends who have negotiated with this lender and thus can advise you on their rates. Or have they negotiated with another lender that you might have to switch to thanks to the low interest rate there.
2. You are a valuable customer
The banks like customers who are valuable to them by, for example, having most of their banking services. Such as savings account and payroll account but also other things like funds etc. Therefore, if you can prove to the lender that you are a valuable customer, the chances will increase greatly when it comes to getting a lower interest rate.
3. The list rate is a ceiling
The mortgage rates that you find listed for the various lenders should be treated as the highest interest rates from this lender. It is therefore not important to be too cowardly when the interest rate is negotiated, but to state that you believe this is a maximum and that you, as the good customer you are, should receive a clearly lower interest rate. Do you know about other people who have received a different interest rate then it is very good idea to mention these. This puts a pressure on the lender to also offer you the same terms.