With interest rates at all-time lows and lenders signing up fewer loans than usual, there has never been a better time to get a better home loan deal.

Often you don’t even have to refinance, you just have to threaten to refinance and banks will often go out of their way to keep you as a customer.

Here is a script we have prepared to help you negotiate a better deal with your lender.

You: Hello, my name is _____ and my account number is _____. I’ve been with you for a few years now and I’m thinking about refinancing my home loan. I’m noticing interest rates with other lenders for as low as 2.49%. This is a lot lower than the current interest rate I have with you. Given my longstanding relationship with _____ bank, is this an interest rate you are able to match? If you are unable to match this, please send me the forms I need to switch banks.

Often, they can drop your interest rates with no further questions asked.

If they say yes to matching your desired interest rate (or at least giving you a discount), make sure you request an email confirming your new rate and that the changes will be applied to your account by start of the next business day.

You could potentially save thousands of dollars a year in interest costs… and by saving and paying off your home loan sooner, you will be one step closer to financial freedom.


  • Don’t fear rejection or confrontation– if you don’t ask, you won’t get. You have everything to gain and nothing to lose. In the current economic environment, customers are often asking their banks to lower their interest rates, so it is not a big issue for your bank.
  • If the banker says no, hang up the phone and call them again. Bankers have retention targets and incentives to meet so it’s in their best interest to come to the party and retain you as a customer. You hold all the power.
  • Demonstrate that you have done your research by quoting what other banks have offered (eg. Online banks with low overheads such as Ubank). This gives you extra bargaining power.
  • Think about your current cash flow – You may think a fix rate is tempting in this low interest rate environment, but we don’t foresee interest rates rising any time soon. A variable rate allows you to not lock yourself in. If you’re unsure about your circumstance, speak to one of our advisors.
  • Ensure you have more than 20% equity in your home. If you don’t, it’ll be harder to negotiate a rate decrease and you may be hit with Lenders Mortgage Insurance if you decide to switch banks. This will eat away at any savings you negotiate.

Just one simple phone call can make such a massive difference to not only your short-term cashflow but your longer-term financial goals and objectives.

These are hot tips that we think you should consider when choosing your loan rates, if you have any questions, please give us a call on (08) 8172 9111 or email advice@catapultwealth.com.au.