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How to ask your bank for a lower rate (with a script)

By admin. Updated .

Quick answer: call your lender’s retention or discharge team, quote a specific lower rate from a competitor, and ask them to match or beat it. Many lenders will cut your rate to keep you. On a $600,000 loan with 25 years left, a 0.30 point cut saves about $113 a month and around $33,900 over the loan.

Lenders often charge existing customers more than new ones. With four rate rises in 2026, a short phone call can be worth more than a year of careful budgeting. Here is how to prepare, what to say, and what to do if the answer is no. Work out what a cut is worth to you with the refinance calculator.

What a rate cut is worth

Rate cut Monthly saving Yearly saving Over the loan
0.20 points $75 $906 $22,638
0.30 points $113 $1,355 $33,886
0.50 points $187 $2,249 $56,236
$600,000 balance at 6.75% with 25 years remaining, principal and interest.

Before you call

  1. Find your current rate. Check your latest statement or app. Write down your balance, rate and whether you have an offset or package.
  2. Find a better offer. Look up rates for new customers with your loan size and LVR, including your own lender’s new-customer rate. Compare on homeloaninterestrates.au.
  3. Know your LVR. Divide your balance by your property’s current value. Below 80%, and especially below 70% or 60%, you qualify for sharper rates.
  4. Know your switching costs. If you’d really leave, you need to know what it costs. See is refinancing worth it.

What to say: a script

“Hi, I have a home loan with you, account number [number]. My rate is [6.75]% and I owe about [$600,000]. I’ve been offered [6.29]% by [lender] for a loan like mine, and I’m planning to refinance unless you can do better. Can you match or beat that rate? If not, can you put me through to your retention team?”

  • Be polite, specific and willing to leave. A real competing rate is your strongest card.
  • If the first person can’t help, ask for the retention or discharges team.
  • Ask for the new rate in writing, the date it applies from, and whether your repayments will change.
  • If they offer a partial cut, ask whether they can go further, or waive the package fee.

If they say no

Refinancing is the next step. Use the refinance calculator to check the break-even point, and keep your remaining loan term so the saving is real. If you are on a fixed rate, ask about break costs first, and read fixed or variable in 2026 before choosing your next loan.

It is worth repeating this check every 12 months, and every time the RBA moves. See what the 2026 rate rises have cost borrowers.

Frequently asked questions

Will my bank lower my interest rate if I ask?

Often, especially if you have a specific competing rate, a good repayment record and an LVR under 80%. There is no guarantee, but asking costs nothing.

How much can I save by negotiating my home loan rate?

On a $600,000 loan with 25 years left, a 0.30 point cut saves about $113 a month, $1,355 a year and around $33,900 over the life of the loan.

Who should I call at my bank?

Start with the home loan or general enquiries line and ask for the retention or discharges team. They usually have more authority to offer discounts.

Does asking for a lower rate affect my credit score?

No. Negotiating with your current lender does not involve a new credit application.

Sources

  • ASIC Moneysmart, switching home loans and negotiating with your lender
  • Figures calculated with our refinance calculator. Updated 17 October 2026.

When is refinancing worth it?

Refinancing $600,000 from 6.75% to 6.10% saves $243 a month and pays back costs in 5 months. When switching is worth it, and when it isn't.