How to ask the bank for a cheaper deal

BEFORE making the switch to a new bank it’s worth phoning up your existing lender to see if you can score a better deal.

If your financial institution comes to the party, it often means getting a discount without having to fill out a scrap of paperwork. But before picking up the phone, be armed with information, including specifics about cheaper deals offered by rival lenders.

It’s critical to be able to reel off some better deals offered by other financial institutions.

This puts pressure on your bank to do something to keep you happy. Here’s a simple script to help you get an on-thespot rate discount.

BANK Hello, how may we help you today?

YOU I want to switch banks. Can you please put me through to the mortgage retention team?

BANK Sure, no problems.

YOU Hi, I’m looking to switch banks to get a better deal. I am paying a mortgage interest rate of 3.5 per cent, but other lenders are offering less than 3 per cent.

BANK Can you explain some of the better deals you are seeing out there?

YOU Yes. Bank [INSERT NAME] is offering a variable rate loan with a rate of 2.99 per cent and another bank [INSERT NAME] is offering rates from 3.05 per cent. Can you match these deals?

BANK We are looking at your account and you do not appear to have reviewed your loan in 12 months. Would you consider staying with us if we could give you a better deal?

YOU Yes, but I want a discount on my rate as soon as possible. My interest rate is too high.

BANK Hold on for a moment and we will see what we can do. ... We have some good news. We aren’t able to match the rate of those other lenders but we can reduce your rate to 3.2 per cent, effective within three to five working days. How does that sound?

YOU That sounds great. Please send me through an email or a written letter notifying me of the change. Thank you.