When you look around and compare the different lenders’ interest rates for mortgages, you see that they are often quite similar. Therefore, one can think that it does not matter as much to which lender you choose to borrow the money. But it is not so that the interest rate stated on the banks’ websites or sites like this is the final interest rate. We and all others present only the lender’s list rates which can then be negotiated from.
What determines which lender is, therefore, the cheapest is usually which one can imagine going down most in interest rates. The question then is how to bargain for a mortgage? You can find a number of tips in our articles that we call Negotiate Mortgages Part 1 and Part 2. There you will find some basic tips that are good to consider.
Some quick tips
In short, it can be said that it is about showing the lender what good customer you are to them. If you will have a mortgage loan of say USD 1.5 million with an interest rate of 5%, this means that you pay USD 75,000 each year to the lender. Of course, this amount goes down when you repay the loan, but in total for a loan that has been with them for many years you will undoubtedly speak up in sums of several million in revenue.
If you have previously not had savings etc. with the lender, there are also things that you can offer to move to them. In general, you can say that anything that makes them money on you and that shows that you will be a loyal customer is good for your negotiating position.
It is not the arguments
Themselves that need to be the most important, but it is largely a matter of presenting them in a good way. Speak correctly and keep calm all the time. Since no matter what you think about clothing, this is not the time to dress too carelessly if you meet a bank official face to face.
Also, remember that it is not only the interest rate that is the most important. The lender wants confidence in you and that is something you should also feel for them. Therefore, it might be worth paying a few bucks extra each month to have the loan from a lender you like.