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Is a ‘Loyalty Tax’ Affecting Your Brisbane Home Loan?

Recognizing Customer Loyalty: A Tale of Personalized Service and Fair Treatment

I recently rang our internet provider with an issue, to check if we had the best product for our needs. It was so refreshing when the representative stated “Mark, you’ve been with us for 15 years, thank you for your loyalty. I have checked, and you are currently on the best plan possible for your area.”

It’s a natural expectation, that if you are a loyal customer and been with the same business/provider for quite some time, you would like to be treated a bit better than a prospective customer.

At the very least, you would expect the business/provider to offer you their product or services for the same price or rate as they would a new customer.

Unveiling the ‘Loyalty Tax’: Navigating Interest Rates for Brisbane Home Loans

Unfortunately, many Banks do not reward their loyal customers, meaning that those who remain with their lender, and do not periodically ask for a discount on their interest rate can pay a higher interest rate, or what I refer to as “loyalty tax”.

Homeowners with a Brisbane Home Loan are currently in a great position to negotiate a better interest rate and reduce their monthly/weekly repayments, as Banks are fighting to retain their customers.

cheerful couple looking at laptop reviewing their brisbane home loan

4 steps to negotiating a better interest rate on your Brisbane Home Loan

Step 1: Determine your current rate

Log into your internet banking and check your most recent Brisbane home loan statement to determine what your actual interest rate currently is.

Step 2: Find your bank’s best rate

Search your Bank’s website for their best current home loan rate offer.

Step 3: Negotiate a better offer

Call your Bank and negotiate your rate to match their current offer for new customers.

Step 4: Repeat every 6 months

Add this process to your calendar and complete it every 6 months.

As part of our service as your mortgage broker, we automatically seek a rate review with your current lender and alert you if the offer is not as good as others in the market.

If your Bank is not willing to assist you with this process, please call your local Mortgage Broker for advice.

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