We recently met with a client who had a mix of business and residential debt totaling approximately $600,000. They approached us to see if we could get a better deal with their current lender. Based on our industry experience, we knew immediately that the clients were paying substantially more than they should be, based on current market conditions.
We approached the client’s current lender and discussed with them the alternatives that were available to the client from other lenders, and asked the current lender if they were willing to review their rates. The lender declined to review.
We then spoke to other lenders regarding the client’s situation and received multiple competitive offers for the client to consider. All offers were considerably lower than the client’s current lender. When we presented these offers to the client, they were shocked at the difference in interest rates between each of the lenders. We helped the client select a loan product that most suited their personal situation, and saved them approximately $8,000 per year.
Interestingly, during this process, whilst we reviewed the client’s options and the client’s considered their position, the current lender increased the client’s interest rate! When the current lender received notification that the clients would be taking their business elsewhere, the lender contacted the clients directly and offered to match the new deal. The client’s reminded the lender that they were given an opportunity to review before any other lenders were approached, and they refused. The clients declined the current lender’s offer to match the deal, and were more than happy to refinance to their new lender.
If you or someone you know hasn’t reviewed their home or business loan in the past two years, get in touch with your Launch Finance broker and we will happily review your loan to ensure it is still competitive in the current market. You never know, you may be paying the bank more interest than you need.