Buying a home is stressful enough without having to worry about skyrocketing mortgage repayments. But one Aussie first-home buyer found a simple way to save thousands—by making a single phone call. Coran Mulcahy, a 28-year-old project manager from Melbourne, saved $58,000 on his mortgage just by asking his bank for a better interest rate.
A Simple Request that Saved Thousands
Coran Mulcahy was feeling the weight of his mortgage after buying his first home—a two-bedroom townhouse in Melbourne for $720,000. He had a $646,000 mortgage and was paying a 6.34% interest rate on his interest-only home loan. That meant a hefty $3,480 a month in repayments. But when he compared rates from other lenders, he found some offering interest rates as low as 5.83%. That’s a pretty big difference—0.51%—and Mulcahy knew it added up to serious money over the course of the loan.
“I thought it was worth calling my bank and asking for a better deal,” he said to Yahoo Finance. So, he did. And after a one-hour phone call, Mulcahy negotiated a 0.3% interest rate cut. That small but mighty reduction lowered his monthly repayments by about $180. But the real win? That simple conversation is expected to save him around $58,000 over the life of the loan. Not bad for a 10-minute call, right?
Why You Shouldn’t Be Afraid to Ask
Mulcahy’s story is a great example of why it always pays to ask for what you want. Many Australians might shy away from negotiating with their banks, assuming they won’t get anywhere or that the bank will reject them outright. But Coran’s experience shows that’s not always the case—especially when you’ve got a solid reason for asking. In his case, a big disparity between his rate and what other lenders were offering was a valid reason for asking for a reduction.
It’s a simple concept, but one that many homeowners overlook. Many banks are willing to negotiate—if you ask. And when the RBA has kept interest rates on hold for some time, it can be a great opportunity to reach out and see if your bank will offer a better deal.
Don’t Wait for the RBA to Act
While the RBA has kept the cash rate on hold at 3.6%, further rate cuts seem increasingly unlikely. So, now might be the perfect time to take matters into your own hands. If you’re a homeowner, whether you’re struggling with repayments or simply want to save some extra cash, don’t wait for the next RBA decision. Be proactive—reach out to your bank and ask for a better deal. You might be surprised at what a simple conversation can do.
The Power of Proactivity
In the end, Coran Mulcahy’s story is a reminder that you don’t have to just accept the rate your bank offers. With a bit of research and a phone call, you might be able to save thousands—just like he did. So, what are you waiting for? It’s time to pick up the phone and ask.
