Negotiating your mortgage interest rate can feel like a challenge. But there is an unknown trick that can give you a significantly lower interest rate on the loan.
Many mortgage customers shy away from negotiating with their bank, but taking the bull by the horns can save you thousands of kroner a year.
According to The auction information there are several ways to reduce interest costs. One way is to visit at least three other banks to compare offers. This creates competition and increases the chance of getting a lower interest rate. They believe that you also increase your chances by negotiating regularly and daring to haggle to save money over time.
But one trick outweighs the others. And according to experts, it is more than often missed.
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The trick many miss
According to a survey by Demoskop carried out in 2023, the most effective way to negotiate down your mortgage interest rate is to order an amortization document. It reported SvD in connection with the release of the survey.
Two out of three customers who have done this state in the survey that they received an offer of a lower interest rate from their bank after ordering this. Even though it has proven to be a very effective way of haggling over the mortgage, it is not common for amortization basis to be used in negotiations.
– In general, very few have requested their repayment basis during the period, which may be due to the fact that few mortgage customers are aware of it and that we have also lived in a low interest rate environment for a very long time, says Peter Sjödahl, CEO at Påmind, to SvD.
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Puts pressure on the banks
Amortization document is a document that shows the terms of your current loan and acts as a signal to your bank. Bouplysningen believes that by requesting that type of documentation, you can put pressure on the bank, because they think you are about to switch to another bank. No bank wants to lose a customer, especially one that could be profitable in the long term.
When you request an amortization basis, you show the bank that you are actively considering comparing terms and interest rates at other banks. This puts you suddenly in an advantageous negotiating position. The bank wants to keep you as a customer and is often prepared to offer a lower interest rate in order for you to stay.
It’s a smart way to negotiate your interest rate down without actually having to do much more than order a document.
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