How to negotiate a better home loan deal in Australia

If you have an existing home loan, trying to negotiate with your current lender can help reduce your home loan costs. We share considerations that could help you negotiate a better home loan deal with your lender.

Why negotiating your home loan matters

Negotiating a better home loan deal is a great way to reduce your home loan costs. Even minor savings on your interest rate can add up significantly over the life of your loan.

Here are five considerations that could help you negotiate the best home loan terms with your lender.

Five considerations when negotiating a better home loan

1. Leverage your credit score

If you have a strong credit score, it give you a leverage in negotiations. Highlighting your reliable repayment history can motivate lenders to offer better terms.

2. Compare market offers

Research current home loan offers from different lenders. Being informed about competitive interest rates and loan features can help strengthen your negotiating position.

3. Highlight your loyalty and stability

Emphasise your employment stability, consistent income, and financial reliability. Lenders value stable customers and are often willing to negotiate better terms to retain them. If you’ve been with your lender for several years, remind them of your history, loyalty and reliability when it comes to paying off your home loan.

4. Prove your repayment history

If you have a proven record of consistently making repayments on time, or even additional repayments, consider bringing this up during negotiations. Your responsible borrowing behaviour makes you a desirable customer, which can give you more negotiating power.

5. Be ready to switch lenders

If your current lender isn't flexible, consider refinancing with a different provider. Lenders would prefer to retain existing customers, so try to clearly communicate your willingness to switch to a new lender and it may prompt your current lender to provide a better offer.

You don’t need to negotiate with Unloan

At Unloan, we believe loyalty should be rewarded, not negotiated. That’s why every year, we automatically apply a discount to your home loan rate. No phone calls, no back-and-forth, and no waiting for rate cuts. Just more savings, every year.

How does the Unloan annual loyalty discount work?

A lower rate, year after year - Each year on the anniversary of the settlement date of your Unloan home loan, we automatically reduce your interest rate by 0.01% p.a., up to a maximum of 0.30% p.a. over the life of a 30-year home loan.

No hidden fees, no catches - The discount is built into your Unloan home loan without you needing to ask us. There are no negotiations, no surprises.

More money in your pocket - The longer you stay with us, the more you could save.

Experience the Unloan difference

Apply in minutes and join thousands of Australians who enjoy a low-rate home loan that gets better every year.

Need help? Chat to our home loan specialists based in Australia who are here to help 7 days a week.

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.

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Calculations are not a loan approval. Applications are subject to credit approval, satisfactory security and minimum deposit requirements. Full terms and conditions will be set out in our loan offer, if an offer is made.

^Rates shown are inclusive of a 0.01% p.a. discount off our reference rate. On each anniversary of your loan’s settlement date, you will receive an additional discount of 0.01% per annum, up to a maximum discount of 0.30% per annum. For purchase loans with a Loan to Value Ratio (LVR) between 80.01% - 90% LVR, a lenders mortgage insurance (LMI) premium and higher interest rate apply. In some cases depending on the property’s location or type, LMI may also be required for LVR between 70.01% and 80%.

*Comparison rate is calculated on a $150,000 secured loan over a 25 year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.