{"id":433914,"date":"2026-05-09T21:11:36","date_gmt":"2026-05-09T21:11:36","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/433914\/"},"modified":"2026-05-09T21:11:36","modified_gmt":"2026-05-09T21:11:36","slug":"australian-lenders-all-have-an-edge-of-cliff-mortgage-interest-rate-heres-how-to-push-them-to-it-and-get-a-better-deal-interest-rates","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/433914\/","title":{"rendered":"Australian lenders all have an \u2018edge of cliff\u2019 mortgage interest rate. Here\u2019s how to push them to it and get a better deal | Interest rates"},"content":{"rendered":"

After three consecutive interest rate hikes<\/a>, mortgage holders are being squeezed.<\/p>\n

If you are seeking a better interest rate, it\u2019s time to push your lender to reveal their \u201cedge of cliff\u201d price to keep you as a customer.<\/p>\n

Here\u2019s what to do.<\/p>\n

Mortgage retention trigger<\/p>\n

A couple of years ago, banks were jostling for mortgage market share, making it relatively easy for borrowers to secure a significant saving \u2013 usually about half a percentage point, equal to two standard rate cuts \u2013 by simply asking for a better deal.<\/p>\n

That process has become more difficult, with many lenders now less willing to offer good deals as they prioritise profitability over market share.<\/p>\n

While asking a lender for a better rate is still a good first step, mortgage holders will probably need to be more strategic to secure a reduced rate.<\/p>\n

The chief executive at the broking group Finspo, Angus Gilfillan, says borrowers need to find their lender\u2019s \u201cedge of cliff\u201d retention price, and be ready to change institutions if necessary.<\/p>\n

Sign up for the Breaking News Australia email<\/a><\/p>\n

\u201cThat\u2019s often the time they will come out with their best price,\u201d Gilfillan says.<\/p>\n

\u201cWhat we are seeing now is that customers need to be more informed and, compared with a couple of years ago, need to cast their net a lot wider to get the cheapest price possible.\u201d<\/p>\n

\"RBARBA governor announces cash rate hike and warns more interest rate rises could come \u2013 video<\/p>\n

To get the cheapest rate, a borrower should first line up a more competitive rate from a rival lender and then submit their discharge form with their current bank.<\/p>\n

This typically sparks the lender into action, triggering a call from their retention team offering their most competitive rate because they now know they are at real risk of losing a customer.<\/p>\n

Property equity position<\/p>\n

There are some steps to consider before lodging a discharge form, such as organising a home valuation.<\/p>\n

If a property has gone up in value, the owner\u2019s equity will have also risen, making them a more attractive customer.<\/p>\n

For example, if a buyer had the typical 20% equity when they bought, but now have 30%, they are seen as a safer borrower and likely deserving of a better rate. The same goes for someone moving from 30% equity to 40%, and so on.<\/p>\n

Gilfillan says that while most lenders are not clamouring to offer mortgage holders deep discounts like they were in 2023, there are lenders that will fight for new business.<\/p>\n

\u201cThere\u2019s always a lender somewhere in growth mode and it\u2019s not always the big four,\u201d he says, referring to Australia\u2019s four biggest retail banks.<\/p>\n

Fees attached to switching loans usually cost a borrower just over $1,000, which needs to be taken into account.<\/p>\n

Mortgages with cash back offers<\/p>\n

While many lenders withdrew their cash offers for new mortgage customers in 2023<\/a>, there are still several in the market, most of which are offered by smaller lenders.<\/p>\n

They typically range from $2,000 to $4,000, according to Canstar data, and vary depending on loan size, so long as the borrower meets various conditions such as having at least 20% equity.<\/p>\n

Canstar\u2019s data insights director, Sally Tindall, says cash back offers are worth considering as long as the new loan is competitive.<\/p>\n

\u201cIt can work in someone\u2019s favour if it comes attached with low fees and a competitive interest rate,\u201d Tindall says.<\/p>\n

\u201cThe bigger your debt is, the more important the interest rate is.\u201d<\/p>\n

Many owner-occupiers are paying in excess of 6% on their variable mortgage rate, even before Tuesday\u2019s quarter percentage point rise is added.<\/p>\n

Tindall says homeowners should be able to secure a loan well under that rate as long as they are willing to switch lenders.<\/p>\n

\u201cWe estimate, even after the rate hike takes effect, a competitive rate for an owner-occupier will still start with a five, but you may have to switch to a lender that you haven\u2019t heard of before,\u201d Tindall says.<\/p>\n","protected":false},"excerpt":{"rendered":"After three consecutive interest rate hikes, mortgage holders are being squeezed. If you are seeking a better interest…\n","protected":false},"author":2,"featured_media":433915,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-433914","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/433914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=433914"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/433914\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/433915"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=433914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=433914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=433914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}