FEAR & GREED | Business News Ask Fear & Greed: How do you ask your lender for a better rate?
May 21, 2025
Interest rates are finally dipping, and it's the perfect time to renegotiate with lenders. Discover effective strategies for securing a better mortgage rate. Learn about the 'loyalty tax' that long-term customers may unknowingly pay. Practical steps are provided to help you approach your lender confidently, including the advantages of working with a mortgage broker. Plus, find out how to make the most of your situation in this shifting financial landscape!
AI Snips
Chapters
Transcript
Episode notes
Steps to Ask for Lower Mortgage Rates
- Start by knowing your current interest rate and researching new customer rates at your bank and competitors.
- Prepare your banking history and property valuation before calling your lender to negotiate a better rate.
Loyalty Tax on Mortgage Rates
- Many long-term customers pay a 'loyalty tax' by not regularly checking if they can get a better mortgage rate.
- Being inactive allows banks to keep higher rates even as new customers get better deals.
Negotiate and Use Brokers
- Don’t accept your lender’s first rate cut offer; take time to think and potentially shop around.
- If uncomfortable handling negotiations yourself, use a mortgage broker to help get the best deal.