mooody
Am I in a reasonable position to negotiate a rate reduction?
Is a negotiated reduction over the life of the loan? Or is it one of those honeymoon rates
Would you be in a better position to negotiate in pre-approval or at the actual application of loan?
I know I should ask my broker, but I usually like to have an idea before approaching them with this kind of question. Cheers in Advance.
Is a negotiated reduction over the life of the loan? Or is it one of those honeymoon rates
Would you be in a better position to negotiate in pre-approval or at the actual application of loan?
I know I should ask my broker, but I usually like to have an idea before approaching them with this kind of question. Cheers in Advance.
I'll focus on this section of your post.
Good point!!! Am I in a position to negotiate?
If you meet the lending criteria of all the lenders that you were interested in and can borrow exactly what you need with all of them, then for sure, bargain. But from my experience, those borrowers are about 25% of all applications. If you are in the majority then you do have to compromise.
Also, ad hoc bargaining on rate does not happen often these days. You just slot into bank's existing discounting criteria. Unless you find a branch lender who is desperate to meet their monthly quota. It used to happen before GFC.
Is a negotiated reduction over the life of the loan?
This depends on the lender. Some lenders guarantee this in the loan contract as x% discount off the Standard Variable rate.
Would you be in a better position to negotiate in pre-approval ?
You should always have it in mind and request it up front.