Before you cry out “I hate click bait”, I need to be clear that the subject line for this email is the honest truth. In this email, I’ll tell you exactly how I did it and break down the numbers.
Sometimes it’s the simplest things that make the biggest difference in your life.
Whilst most banks have a massive hardship department to help those homeowners and investment property owners that are suffering financially through COVID, I didn’t want to be registered for hardship as it gives an indication that I can’t manage my money and I could be a liability for a bank. It’s one thing to have issues for a $500k or $1m loan, but when you owe over $10m, it’s a big liability and risk for a bank.
So I rang the retentions department.
This is the area that tries to protect the bank from losing valuable clients that are often looking to refinance and go to another bank.
So the staff that work in that department are used to doing deals and trying to look after people – a completely different story to a department that’s dealing with thousands of people that are in financial trouble.
I start by saying…
“How are you?”
“How’s your day?”
This builds rapport and shows someone is actually interested in how they are doing.
I go on to say…
“Hey look, I’m not in trouble and I don’t foresee any trouble, but just like the bank, I like to plan in advance and make sure I have a plan a, b, c and d just in case the world changes.”
“I still foresee that I will be able to pay my mortgage, well into the future, but no one knows how far this is going to go. I’m currently on a high mortgage rate as I’m a large borrower and I took out my loan in a period when banks were very conservative.”
“I’ve now given you 2 – 4 years perfect repayment history and so if you can be slightly more competitive on your interest rate, it will lower my repayments, increase my cash buffer and mean that I’m even more likely to pay the mortgage into the future.”
What was the outcome?
Lender One dropped my rate from 4.06% to 3.59% immediately which was a 0.47% drop and 12% less repayments
A saving of $15k on a $3.2m mortgage.
I tried for more discount but that was it.
Lender Two first offered a drop from 4.24% to 3.49%…
… and then after a bit of pushing dropped to 3.39%.
That’s a reduction of 0.85% or 20% and just over $60k in savings on a $7m mortgage.
Lender Three which had the highest interest rate of 4.61% didn’t answer the phone and so I had to email.
They didn’t offer me a cent.
That wasn’t the end of the world as the mortgage is only $600k and most of the time that’s where I put any excess money in offset and so I don’t actually pay the interest.
No matter what the size of your mortgage, there’s money to be saved and it will only cost you a phone call. That’s the highest amount of money I’ve ever made for a and a few minutes of my time.
Here’s a breakdown of the numbers:
Try out these techniques for yourself and contact me via facebook or email to let me know how it turns out. It will only take a few minutes to pick up the phone right now.