● Switching to Better Rates

My Bank Hasn’t Passed On Any Rate Movement — What Can I Do to Negotiate a Better Rate?

My Bank Hasn’t Passed On Any Rate Movement — What Can I Do to Negotiate a Better Rate?

Lenders retain existing customers at better rates when they are asked directly. The same bank that won’t proactively lower your rate will often match a competitor rate when you present one. The conversation costs you nothing.

Banks price existing customers differently to new customers — and most of that difference exists because existing customers don’t ask. The most effective first step is also the simplest: call your lender, reference a specific competitive rate, and ask them to match it.

Before You Call

Know your current rate and loan details. Have a specific competitor rate to reference — not a vague claim that you can get a better rate, but an actual lender name and rate. This changes the conversation from speculative to transactional.

The Negotiation Call

Call your lender’s retention team — ask for retention specifically, not general customer service. State that you’ve been a customer, you’re reviewing your options, and you’ve found a comparable loan at a specific rate elsewhere. Ask whether they can match or improve on that rate.

What They Can Typically Offer

  • A discount off your existing variable rate — sometimes 0.15–0.40%
  • A fixed rate offer
  • A fee waiver or product switch to a lower-rate product within their suite

The Cost of Not Asking

Borrowers who don’t negotiate and don’t switch often pay a loyalty premium of 0.3–0.6% for years. On a $500,000 balance, 0.4% is $2,000 per year. The call costs five minutes.

You may wish to speak with a licensed mortgage broker to assess your personal circumstances.

This is general information only. Rate negotiation outcomes depend on individual lender policies and loan circumstances. Speak with a licensed mortgage broker for advice on your refinancing options. All loans are subject to lender approval.

Sources: ASIC MoneySmart, Negotiating a Better Home Loan Rate 2025; ACCC, Home Loan Price Inquiry; RBA, Housing Finance Statistics 2025.

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