Rate hold gives borrowers, brokers bargaining power

by Adam Smith06 Aug 2014
Yesterday's RBA rate hold means borrowers are better positioned to ask their lender for a rate cut, it has been claimed.

The Reserve Bank board chose yesterday to leave the official cash rate on hold at 2.5%. 1300 HomeLoan managing director John Kolenda has said the decision puts home loan customers in a good position to negotiate with their lender.

"The home loan customer is in a strong negotiating position and your lender will be keen to listen, particularly if you raise the possibility of looking elsewhere," Kolenda said.

Kolenda pointed to a recent wave of fixed rate cuts, and said lenders were competing strongly for borrowers' business.

“The borrowing costs for banks in the global market have fallen and they are in a position to offer highly competitive home loan products," he said.

Kolenda urged borrowers to make use of mortgage brokers to better negotiate rates with their lender.

“A broker won’t cost you a cent and is the best person to advise you on your options,” he said.