I am trying to negotiate my interest rate on my home loan (std variable) with a major bank.
However after phoning their mortgage specialist they advised me they cannot negotiate on my current home loan as it is already a "no frills" product (with no annual fees). They also advised me that because I setup this loan via a broker, that they cannot adjust anything and I would have to go through my broker to do so. However they had another product with lower interest rate (0.3%) with offset option but with a $375 p.a fee.
I spent almost 30 min. on the phone and was getting no where with negotiating, I told them various other competitors rates whom were lower (a mixture of bank lenders and online) and they advised they cannot compare with online lenders.
Are they just bullsh*ting me or what?
They also told me I would need to put in a new application (whole process) to change over to their other "better" product.
Want some advice before I speak to my broker.
Two words: Mortgage Broker!
Just get them to find you a better deal, present that to your current lender & if they won't come to the party, vote with your feet! There's a number of online calculators that tell you how much it's going to cost to refinance, and how long it will take to offset the exit penalties by virtue of reduced fees/interest etc! :)
They can compete with anyone, the party line with most major banks is just that they won't!!!
Also, my lenders have never asked for a reapplication to move between products…this doesn't really seem reasonable to me, it sounds like they might want to lock you into some other terms & conditions you may not currently be bound by. I'd look very carefully at what you're signing if you decide to do this.
Either that or they just want another free round of application/admin/setup fees! :p