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.
