General information only — not financial advice. This content is intended as educational guidance. Consult a qualified financial adviser, mortgage broker, or legal professional before making financial decisions. See our full disclaimer.
Australian banks are sitting on front-book / back-book pricing gaps of 0.5%–1.0%. This means new customers routinely get better rates than loyal existing customers on the same product. If you haven't asked for a rate drop in the past 12 months, you may be paying more than necessa
Most successful negotiations result in 0.15%–0.40% off. On a $600,000 loan, 0.30% off saves approximately $1,800/year or $150/month. Some borrowers with excellent equity positions (low LVR) and strong repayment history report getting 0.50%+ off by threatening to refinance.
Fixed rates are generally not negotiable once locked in - the rate is set for the fixed term. However, when choosing a new fixed rate (e.g., when your current fixed term expires), you can negotiate the fixed rate offered to you. Banks have more flexibility on fixed rate pricing than most borrowers realise.
At least once per year, and additionally after any RBA cash rate change. Set a calendar reminder. The market moves continuously, and even a bank that gave you a competitive rate last year may now be 0.2–0.3% above the market. Most borrowers who negotiate report the process takes 15–30 minutes by phone.
Use our free calculator to get personalised results based on your specific situation. No sign-up required.