Mortgage holders urged to negotiate better deals this Christmas

Mortgage Holders Urged to Negotiate Better Deals This Christmas

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance), was featured in Broker Daily in December 2024 urging mortgage holders to actively seek better deals from their lenders over the Christmas period, as an RBA rate cut remained unlikely until well into 2025.

With the cash rate having held at 4.35 per cent since November 2023 and most bank economists not expecting a cut until May 2025 at the earliest, Mark’s message was that borrowers did not need to wait for the RBA to take action on their behalf. He encouraged those who had maintained their repayments and kept a clean credit record throughout the year to approach their lender and ask for a better deal, noting that the festive season could work in a borrower’s favour. As he put it, lenders might reward borrowers who had been model customers with improved loan terms if they were simply willing to ask.

Mark outlined what a strong negotiating position looked like. Borrowers making principal and interest repayments rather than interest-only, with stable employment and a solid credit history, were best placed to make the case. He also recommended reducing discretionary spending, paying down credit card balances, and closing out any buy now, pay later facilities or shorter-term finance such as car loans and personal loans before approaching a lender. Each of these steps would strengthen the application for a rate reduction or better loan terms.

For those who did not want to negotiate alone, Mark pointed to the value of using a broker. A broker could approach multiple lenders on the client’s behalf, compare available options, and advocate for better terms in a way that a borrower dealing directly with a single bank could not. The RBA’s next meeting was not until February 2025, and Mark’s advice was clear: rather than waiting months for official relief, there was an opportunity to act now.

If you want to know whether your current home loan is still competitive or would like help negotiating a better deal, contact Evolve Lending & Finance for a review.