Interest rate negotiations

Written By Kim Manunui

For those “DIY” interest rate negotiations here are a few things too keep in mind to help negotiate the best possible rate:-

  1. Speak to a real person: When negotiating your home loan rate, it's always best to speak to a real person on the home loan team. This way, you can have a conversation to get a better understanding of what rates are available to you and what you need to do to get the best rate. Don’t be afraid to call your bank and take the time to chat with them when you have 20-30 minutes to spare.

  2. Check the advertised rates for all banks, www.bizloan.co.nz/tool-kit . Knowledge is power, this way you can compare and see if there are better rates available at other banks and use this in your negotiations.

  3. Understand your position, what does your credit score look like, do you meet current debt servicing guidelines, what is your loan to property value percentage. You can access all this information in our tool kit bizloan.co.nz/toolkit to do some homework so you can make that call with confidence.

  4. Clearly state your intentions: When you get through to a human, start the phone call by stating your intentions. For example, you could say, "I'm calling to re-fix my mortgage. Who do I need to speak with to secure the best possible rate?"

  5. Sell yourself and be candid: Once you are speaking to someone, ask them what their absolute best possible rate is. If you want to negotiate for more, share your positive points, such as being a loyal customer, having good equity in your home, always making your mortgage payments on time, family and business connections etc. Don’t expect the bank to have this wider knowledge in front of them, the more desirable you present the more likely a better outcome. It is more productive for Banks to retain good quality existing customers, than replace you for a new one.

    Be weary of advisors reluctant to renegotiate with your bank or a new one on your behalf, are they doing the right thing by you or trying to protect their income earnt and or income trails.

    Whatever you do, don't just take the first rate offered to you. If you ask a few times and walk away without a discount, at least you can take comfort of giving it a fair shot..


Kim Manunui

Hi, I’m Kim and I work with a great team to help individuals, as well as small and not so small businesses get their message, product and services to the world using digital media and creating wonderful websites that don’t cost the earth.

I was born in Canada, and grew up around Vancouver and the mountains of British Columbia. My love of pristine environments led me to New Zealand and eventually to the mountains, lakes and rivers of the central North Island which is home. My family’s heritage is here, and it’s from here that Korio traverses the planet.

The digital world is never static and neither are we.

And I say ‘we’ because I work with an awesome group of talented people who I gather together as required to complete a project.  Whatever your business, not-for-profit or individual needs are we gather the best team to get the job done.

Collaboratively we are creative, share sustainable values and work hard for great outcomes because that’s the buzz of satisfaction that drives us.

If you have an audience and market to reach, we can make that happen. Creative design, words that work and smart behind the scenes stuff that cuts through the online noise. We’ll design your website and then build it. We’ll manage the content as well as all your hosting needs. We can handle your online advertising so you get noticed,
and we’ll manage your social media presence so you get the clicks, likes and engagement to grow your business. All within the budget you set, because none of this needs to cost the earth.  And the job doesn’t stop when your website goes live. We are your virtual business partner.

https://www.korio.co.nz
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