When we hear the quarterly profit results from the major banks, we can’t help but think “I must be getting ripped off!”. If you’re one of these people, then you’re probably right, and the banks do make a significant amount of their profit from “lazy loans”.
Our first urge is to call the bank and tell them we’re taking our business elsewhere, but then life gets busy and some of us forget all about it. That is until the next profit results are published!
At Peasy, we make it our mission to ensure that our clients not only get the most competitive rate available at the outset but also make sure that the rate stays competitive for the life of the loan.
For this reason, we have a team of people who spend most of their time reviewing the loans for our customers, totally free of charge, and we’ve literally saved over $1 million dollars for our clients in the last 12 months alone.
We proactively review our clients’ loans every 12 months, plus whenever there is a milestone such as a fixed or interest-only term expiring.
There’s a little bit involved in the loan review process, although here it is in a nutshell;
- We contact your lender to get the most up-to-date information (of course the lenders guard this information as they don’t want us reviewing your rate!)
- In some cases, we’re required to get you to sign a form or provide us with updated info such as a postcode, etc.
- Once we have the rate, we see where this compares in the market, plus what your lender is offering new customers. We use this as a “yardstick” for our negotiation
- We submit our first pricing request using the lenders’ specified process
- The first offer is never their best, so we “escalate” the request. Some lenders have their own escalation process, but others are a little more manual where we need a representative’s involvement
- If the offer still isn’t competitive, we escalate again. This happens most of the time!
- Once we have the best offer from the lender, we email you with the results – we include the amount we saved you (of course we like to blow our own trumpet!), plus a comparison with other lenders’ offers with similar loans and the savings you could receive if you refinance
What happens from there is really up to you. You can sit back and enjoy the savings from your new rate, or if you’re keen on exploring one of the other options we’ve presented, we can start the paperwork for you. If you have any questions about this process or any other matter, feel free to reach out to our friendly team who would be happy to assist.
