The Hows and Whys of Renegotiating Your Home Loan

Would you be surprised to learn that the majority of Australians are more likely to shop around for a better deal on their electronics instead of their home loans? Well that’s the case for the vast majority of us, according to a survey conducted by bank ME.

The Savvy Savers Survey found that, while we Aussies love a good bargain, we’re very much ‘set and forget’ when it comes to our home loans. In fact, figures state that 68 per cent of people regularly review their phone plan, yet only 44 per cent do the same for their home loans. This may be due to the common misconception that renegotiating your home loan is more time and effort than it’s worth. But it’s important to consider it, because as the interest rates change, so too should your repayments. And when you take into account that clever renegotiations can save you a potential $100 per week (or $8,000 per year), it’s a crucial move for those who want to make sensible steps towards saving.

So, how do you go about doing it? Renegotiation isn’t something that’s readily advertised by the big banks, but they are usually willing to haggle and you may be surprised at the result you might get. Before you make the call to your bank though, do some research beforehand to become familiar with the rates different banks are offering. This will help you get more leverage when you do speak to someone, and you can also familiarise yourself with the various financial terms you might come across.

Bush Bite: Beware of the Company you keep

Once you feel ready to take the bank by the horns, phone your branch and state that you’re unhappy with your home loan. Tell them that you’re willing to go elsewhere if they’re unwilling to assist you, which is a threat most banks won’t take lightly. If they are unwavering in their refusal, or you just don’t have the time to tackle it yourself, you can use the services of a finance broker instead. These are professionals who deal in close quarters with the banks all the time, and at a level where they’re aware of information that can encourage better outcomes for you. Whichever way you go about it, renegotiating your home loan can ensure you’re in a stronger financial position that you’d otherwise be, with surprisingly little effort required.

Renegotiating your home loan might seem like an effort, but it’s really quite straightforward. And if you’re a savvy saver, you should utilise any opportunity to spare yourself some cash. As to how you should spend that extra money? Well, it can be put towards many different things like a family holiday, a car upgrade or just straight into your savings. But if you want to grow your nest egg, consider putting it towards some form of investment instead.


  • Renegotiating your home loan is a sure-fire way to save around $8,000 dollars each year

  • It’s not as difficult as you might think it is. In many cases it’s as simple as picking up the phone and calling your bank.

  • Do your research before you renegotiate. Become familiar with what the other banks are offering to give yourself some leverage.

  • Don’t be afraid to take your business elsewhere if your bank isn’t willing to play ball

  • Consider putting any additional savings towards investing to further grow your nest egg

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