26 Nov Haggling for a Better Deal? Here’s How
You can potentially save money on your budget simply by asking for it.
Haggling may seem like a huge effort for some and so it certainly is not for everyone. People tend to not haggle on big purchases, or on things like home loan, insurance, or credit cards. They may think it’s embarrassing, not worth their time, or maybe they don’t have an idea how to do it.
Most people don’t realise this but some banks and lenders are actually willing to lower their home loan rates for borrowers who asked for a discount. They have competition so they would want to keep you as their customers in their business. So I suggest you take advantage of this and use the following tips to haggle for a better deal.
Have a look:
Don’t accept the initial offer.
Banks/Lenders won’t give you the best deal for the initial discount. Be persistent and get the most out of your haggling skills in getting the most competitive deal.
Do your research.
Research for current home loan rates and compare the available offers. Also, having this knowledge will help you in haggling for better rate as you would know if the rate offered to you by your chosen bank is good to go.
If the bank learns that you are also patronising their other products such as credit cards, insurance, or savings account, chances are they will be more willing to offer you a generous discount. Or you could bundle up these products together with your home loan deal to snatch a competitive rate.
Haggle with manners.
Remember, the person you’re negotiating with is also a person, particularly, a person in the business. So stay calm all throughout the negotiation process, be pleasant, friendly, and act professionally. Try to also pick the time of the day when it’s not so busy. A salesperson is more likely to cut you a deal when they have enough time to consider your demand.
Seek professional assistance.
Not much of a haggler? You could try consulting a finance broker to negotiate on your behalf. Some finance brokers have already existing relationship with some banks and lenders so negotiation can be a smooth process.
Kirsten Nazzari-Hawtin had been in the finance industry for over 10 years. She is a trusted MFAA-accredited Finance broker and has access to over 30 lenders across Australia. Kirsten can help you with: Home loans, Buying your first home, Investment finance, Vehicle finance, Debt Consolidation, Personal Loans, Equipment finance, Business finance. Kirsten believes that every client deserves to be treated like her only client, and is passionate about delivering great results, every time. Shoot her an email at firstname.lastname@example.org or give her a ring 0408 081 082.
Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.