Shop around for a loan discount rate

Rate discounts are used to lure new borrowers or to encourage them to switch from a rival lender.

Many home loan borrowers get a discount off the advertised standard variable rate of between 0.6 percentage points and 1 percentage point.

The big four banks have increased their discounts since 2008. Discounts of 0.8 percentage points are now commonplace.

If you have had a loan for a few years it may be worth shopping around a few lenders and threatening to switch.

Source: Sydney Morning Herald