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5 reasons you may be able to get a lower interest rate

5 reasons you may be able to get a lower interest rate

  June 7, 2023

5 reasons you may be able to get a lower interest rate

Reserve Bank of Australia (RBA) has chosen to move the cash rate to 4.10%. With the cash rate increasing by 4%  since May 2022, many households have felt the pinch of rising interest rates. On top of that, many fixed-rate loans are due to expire in the second half of this year, which could double (or more) the amount of interest those households pay in interest.

If this is you, did you know you might be able to get a lower interest rate? There are a number of things that lenders look at when considering your interest rate. If these have changed since you took out your home loan, it’s possible to get a more competitive interest rate.

Whether your loan is a variable rate or your fixed rate is due to expire, speak to us to see if we can negotiate a better interest rate with your current lender or another.

Some reasons you may be able to get a better interest rate include:

1. You’ve been meeting or exceeding your repayments.

Not only does this show the lender you are a reliable borrower, but if you are paying principal and interest, it will also bring your LVR down (the ratio of how much of your home you own vs the loan). A lower LVR could get you a more competitive rate.

2. You’ve paid off other credit.

Have you previously had a credit card, other loans or a HELP debt that you have since paid down or got rid of? The lender may now view you as less risky.

3. You’ve cleaned your credit file.

Improving your credit report could build a stronger case for a better interest rate. You could do this by meeting repayments on time, closing any old transaction accounts that could be charging fees, reporting any errors in your credit file or time passing since any damaging credit problems.

4. You’ve had a pay rise or gained full-time employment.

If your employment has changed to be more permanent or you have received a pay rise, you could look more favourable to a lender.

5. You find a lower interest rate with another lender.

This could provide better footing to negotiate with your current lender, or you could consider refinancing to the other lender. Keep in mind there could be costs involved in refinancing, we will run the numbers for you to determine if this is in your best interest.

If your situation changes it pays to review your home loan. Perhaps you have paid off a debt, gotten a pay rise of have been paying off your loan. You may be in a better position to get a more favourable interest rate or be able to structure the loan to better suit your circumstances.

Lenders often offer lower interest rates to new customers. At MC Mortgage Solutions we regularly review clients’ loans on their behalf and if they could be getting a better deal elsewhere. We do the legwork to negotiate with their existing lender, or move their loan to one that better suits their needs.


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MC Mortgage Solutions would love the opportunity to discuss your circumstances with you. Whether you have found a house or are just in the planning stages it's never to early or late to make sure your finance is right for you.

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MC Mortgages was established with one clear goal: to be more than just brokers. With this compelling vision in mind, we have created a brokerage that is focused on looking beyond the customer’s initial request and taking a holistic approach to all their needs.

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