Mortgage holders continue to struggle after being hit with eight consecutive cash rate rises in 2022.
But a finance expert believes there is a way some homeowners can save potentially thousands off repayments.
WATCH VIDEO ABOVE: Financial educator’s tips to save on your mortgage.
Author and financial educator Nicole Pedersen-McKinnon suggests banks can make a competitive offer when prompted.
She says many offer some new customers discounts, and it is an opportunity for people to shop around.
“It’s based on loan size, loan percentage and even by location,” Pedersen-McKinnon said on Sunrise.
The Commonwealth Bank has shaved 0.07 per cent off its basic rate for homeowner occupiers that were new customers and owned at least 30 per cent of their home.
It follows ANZ cutting its rate to 4.59 per cent for new customers earlier this month.
“The first thing you need to do is go to your existing bank and go ‘Hey, I’m a loyal customer, share the love’,” Pedersen-McKinnon said.
If that doesn’t work, she says customers should ask for a mortgage discharge form and say they will shift their loan because they’ve seen a lower rate.
“Call their bluff and say, ‘I’m leaving’ and see what they say,” Pedersen-McKinnon said.
“They’re desperate to keep your loan.”
For those who could re-finance, she says it is worth searching for a bank offering a rate of 4.5 per cent.
She says this could save a borrower $582 a month, or almost $7000 a year, on a $500,000 loan.
Some websites are offering 4.59 per cent loans for some customers including Unloan, Loans.com.au.
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