Mon. Nov 4th, 2024
mortage rate falls

If you’re refinancing your home loan, mortgage brokers advise negotiating for a rate discount, as many banks have unpublicized special rates and cashback offers that can lead to significant savings, particularly for those with good equity.
ANZ recently made headlines by offering a 5.59% one-year fixed-term rate exclusively through its app, while still advertising a 6.19% one-year fixed rate. The lower rate was only available to borrowers with at least 20% equity. Brokers report that these kinds of exclusive, lower rates are becoming more common in today’s market.
How to Secure Better Rates
Mortgage adviser Karen Tatterson from Loan Market said that while other banks haven’t matched ANZ’s new rate, ASB did lower several rates in response, reducing its one-year rate by 16 basis points to 6.03%.
Tatterson emphasized that although banks publish standard rates, borrowers can often negotiate for lower rates. “ANZ tends to offer slightly lower-than-advertised rates if you push, depending on market factors like the swap rate,” she said.
She encourages clients to compare app or online rates with other offers. “I always advise clients to confirm whether the offered rates are the best available. If they are, we recommend locking them in online. If not, we negotiate with the bank to secure better terms.”
The Reason for Lower Rates
Jeremy Andrews, a broker at Key Mortgages, believes ANZ’s recent rate cut reflects the bank’s prediction of a sharp drop in the Official Cash Rate (OCR), which usually results in lower borrowing costs.
Andrews noted that ANZ is one of the few banks maintaining higher advertised rates while offering significantly lower hidden specials. “We’ve seen a slowdown in refinancing activity, which may suggest that borrowers are holding out for even lower rates before committing,” he said. “But we expect things to pick up soon as more borrowers look to lock in these lower rates.”
Cashback Incentives
In addition to rate discounts, both Tatterson and Andrews mentioned that many banks are offering cashback deals to attract borrowers, especially first-home buyers or those with larger deposits. Tatterson noted that first-home buyers are often offered around $5,000 in cashback or 0.8% to 0.9% of the loan amount.
However, she added that most borrowers are currently prioritizing lower interest rates over cashback. “With borrowing costs being a significant concern, people are more focused on getting the best rate.”
Andrews has noticed that banks are offering larger cashback deals for borrowers with strong equity. He’s seen more cashback incentives for those with less than 20% deposit than in previous years, and even more generous offers for borrowers with over 30% equity. “We recently secured more than $15,000 in cashback for a client with a larger mortgage,” he shared.
Maximizing Your Savings
To get the most out of these hidden offers, brokers recommend being proactive in negotiating for the best rates and cashback incentives. Banks are often open to providing better deals than what’s publicly advertised, particularly for borrowers with strong equity or first-home buyers.

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Given the current volatility in interest rates, it’s important to explore all available options before locking in a new home loan rate. Consulting with a mortgage broker can help ensure you navigate the various offers and secure the best possible deal.
If you’re in the process of refixing your home loan, don’t settle for the first rate you see. Push for discounts, ask about unadvertised specials, and take advantage of cashback offers to maximize your savings.-TIN Bureau

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