An illiterate with anything property related.

Hello community,

I posted on Reddit and the community told me to come here and ask for suggestion/help as it will be more knowledgeable and helpful.

I live with my parents and they have not changed or negotiated their home loan/mortgage ever since. I, like them, have absolutely no idea when it comes to the jargon, terminology and general gist of anything finance related. I have taken the initiative to try and 'learn' more about home loans/mortgage and by doing so, want to help them get a better deal because something tells me they are getting the short end of the stick right now with their current plan.

For the homework I've done so far, there is so much conflicting information about who is better (i.e. bank vs broker). It also seems as though it depends on my parents financial situation as well. Honestly, it's a lot to take in right now for me (my parents are immigrants so I can see why they haven't bothered to 'shop' around).

My question to the community is, how should I go about it? Do I stick with the bank or do I go to a mortgage broker? I have uploaded an image of their current home loan/mortgage and I'm sure most would agree we could score a better deal. Any help, suggestion, information will be greatly appreciated!

 

Welcome! Whether bank or broker, you can nearly always get a reduction just by asking the question

 

What are they after? If it is just a rate reduction with their current bank, just get them to ring up and ask

If they want lower rates and repayments they can go to another bank and apply, but how would they know if there are other more suitable lenders out there, how would they know if they have a high chance of approval before applying? They would be best to use a broker for this.

 

That's definitely high. First step, ring Westpac and ask for a discount. You're about 1% to high right now.

If they won't help, you can either fix at around 2.29, or look at refinancing.

If you want to look at refinancing, a broker will be best for this.

 

to be honest, they don't even know what they want so it's me trying to make all the calls. I would suspect they would want a lower rate with lower fees? pretty much paying less?

 

thank you! as for calling them, is it really that simple to just call and ask? should I not be "prepared" going into that call?

 

Lower interest rate would allow them to pay less, but so would extending the loan term - less minimum repayments anyway. If they have cash an offset might be worthwhile and all 3 would be much better than any one.

 

Yup, really that simple. Just tell them your rate is way too high and can they please reduce it - another bank is offering 2.8%, so can they match it? They may try and get you to fix - just let them know you want variable.

 

thank you for your time and input! really appreciated! I will have a family meeting and see what's up

 

May I ask one last question? How do I find out that 'lowest rate' possible to somehow "bluff" the bank into giving a lower interest rate? I went on the 'compare' website to fish out other home loan rates, do I just quote them the lowest one I saw on that website or will I be extending myself too much there?