Negotiating a low interest rate can be a daunting task especially if you have not taken a home loan before. Contrary to popular belief, I have found that banks in New Zealand do tend to be compete on the interest rates. I have seen times when a discount of a quarter to half a percent was not unusual. These days it can really depend on the market conditions, as sometimes banks can advertise rates which are already pretty close to the lowest they will do. This can depend on what other banks are competing on also.
The best way to haggle a good rate is to let a bank know of a great rate you may be offered by another bank. Nothing really motivates a lender more than the prospect of loosing a deal. Of course this can be a bit of a catch 22 situation as you may first need a good rate from one bank to get a low rate quoted from another. A mortgage broker can be useful in this situation, because they tend to be negotiating many deals for various terms, they tend to have a good idea of the market conditions.
Apart from a low interest you will probably want to see if the new bank will offer you any help with paying for your lawyer’s bill. This is quite common practice at the moment and you can expect any amount up to around $1,000. This does depend on the size of your mortgage and sometimes the size of your deposit.
