Many borrowers don't realise their interest rate is negotiable. Lenders have discretion to offer discounts, and their retention teams exist to stop customers refinancing elsewhere.
A 15-minute call can save you hundreds a year. Here's how to make it count.
Before you call
1. Know your current rate and loan details
Have your rate, loan balance, loan type (owner-occupier or investor, principal and interest or interest only) and roughly how long you've had the loan.
2. Know your property value
Lower LVRs usually attract lower rates. If your home has grown in value since you bought, mention it. If you're now under 70% or 60% LVR, you may qualify for a better pricing tier.
3. Get a competing offer
This is the most important step. Find out what rate you could actually get elsewhere for a similar loan. A broker can give you a specific, real offer rather than an advertised rate you might not qualify for.
4. Check your own bank's advertised rate
If your bank offers new customers a lower rate than you're paying, that's a strong point to raise.
The call
Ask for the retention or customer loyalty team. Front-line staff often can't change rates.
A simple script:
"Hi, I've had my home loan with you for four years. I'm paying 6.84% variable, with about $520,000 owing and an LVR around 65%. I've been offered 6.24% by another lender. I'd prefer to stay, but I'd need you to match or get close. What can you do?"
Then stop talking and let them respond.
Tips that help
- Be polite but firm. The person on the phone has some discretion. Make it easy for them to help you.
- Be specific. Exact rates work better than "I've seen cheaper".
- Mention your history. On-time repayments, other products held, years as a customer.
- Ask for it in writing. Get the new rate confirmed by email or in your app.
- Ask when it applies from. Usually from the next day or next repayment.
If they say no
You have three options:
- Ask to escalate. Sometimes a manager has more room.
- Ask about a product switch. Your bank may have a cheaper product they'll move you to.
- Refinance. If they won't move, they've told you what they think your loyalty is worth.
What if you can't refinance?
Some borrowers worry they won't pass a new lender's assessment. Lenders test new applicants at roughly 3% above the actual rate, which became harder after four rate rises in 2026.
The good news: negotiating with your current lender doesn't usually require a new serviceability assessment. You can still ask for a lower rate, even if you'd struggle to refinance.
How much difference does it make?
On a $520,000 loan with 25 years remaining, cutting your rate from 6.84% to 6.34% saves roughly $160 a month, or close to $2,000 a year.
Let a broker do it for you
At Finfident we review clients' loans regularly and can approach lenders with competing offers on your behalf. If your current lender won't move, we handle the refinance.
Frequently asked questions
How often can I ask for a rate reduction?
There's no rule. Many people ask once a year or after a change in market rates.
Will asking for a lower rate affect my credit file?
No. A rate negotiation with your existing lender isn't a credit application.
Should I threaten to leave?
Only if you're willing to. Lenders can tell when it's a bluff, and a real competing offer is far more persuasive.
Want us to find a competing offer you can take to your bank, or handle the switch for you? Call Finfident on 02 6416 2142, or Call, Text or WhatsApp 0424 545 654.
Want to know if this applies to you?
Talk it through with a Finfident broker. It's free and there's no obligation.
