Interest rates are now at historical lows and all of the banks are vying for business. If you are a borrower, this puts you in the driving seat. Here are a few tips on how to snag a better deal from your bank.

1. Know what you current deal is.

Before doing anything, you should know exactly what your current rates and charges are. If you are thinking of switching banks, make sure you are on a variable rate because break fees will usually apply with fixed rate mortgages.

2. Compare the Market

If you are thinking of contacting your current bank to demand a better deal, it certainly pays to check what else is happening in the market. You may be already on a great wicket. If not, and other banks are offering better deals than your bank is currently offering you then it is time to hook in and ask why not?

3. Talk the Talk

Now that you are armed with the information that you need, it is time to out it into action. If you aren’t confident with talking directly to your bank, then get in contact with a mortgage broker. If you are right to speak directly with your bank then get in touch with the Home Loan Retention Team and start the negotiations.

4. If you never Ask, you will never Know.

Borrowers are in the driving seat with lenders. Be prepared to get tough and to use your strong bargaining position. Find out why your rate is higher than that of new customers, and why you are getting hit with all those fees and charges. If your bank refuses to budge and come to the party, request that they provide you with a Discharge of Mortgage Form. This will usually either lead to some form of discount or a reduced rate. If not, you may then just need to consider refinancing with another lender.