Yes, you can often get a lower rate just by asking, as long as you come prepared. Find the rates other lenders offer new customers with your LVR and loan type, ask your lender to match them, and be ready to refinance if they won’t. The gap between the average variable rate (6.63%) and the lowest advertised (around 5.79%) was more than 0.8 percentage points in October 2026, worth about $327 a month on a $600,000 loan.
What a lower rate is worth
| Rate reduction on a $600,000 loan | Saving a month | Saving over the life of the loan |
|---|---|---|
| 0.10% | About $40 | About $14,000 |
| 0.25% | About $99 | About $36,000 |
| 0.50% | About $196 | About $71,000 |
Our calculations for a 30-year principal and interest loan starting at 6.63%, the average variable rate according to Canstar as at 2 October 2026. Excludes fees.
1. Know exactly what you have
Before you call, check your current rate, balance, remaining term, LVR, fees and features (offset, redraw, package). Note when you took the loan out; older loans are often furthest from current new-customer rates.
2. Research the market
Compare rates for borrowers like you: same loan size, LVR, purpose and repayment type. Look at the comparison rate as well as the headline rate. Save two or three real offers you’d genuinely consider switching to. Check your lender’s own website too: if it advertises a lower rate to new customers for the same loan, that’s your strongest argument.
3. Know your strengths
Lenders want to keep low-risk customers. Mention anything that puts you in a good light:
- An LVR of 80% or less, especially if your property has risen in value or you’ve paid the loan down.
- A clean repayment history.
- A large loan balance, which may qualify for a bigger discount. See why bigger loans get a discount.
- Other products with the lender, such as savings or a credit card.
- Stable income.
4. Make the call
Ask for the retention or discharge team, as they usually have more authority to discount than general customer service. A simple script:
“I’ve been with you for [X] years and my repayments are always on time. My LVR is now about [X]%. I’ve been offered [rate] by [lender] for the same type of loan, and I’m considering refinancing. Can you match it or offer something close?”
Then stop talking and let them respond. If they offer a partial reduction, ask whether that’s the best they can do.
5. Be ready to walk away
If your lender won’t move, refinance. Weigh the saving against switching costs: discharge, application, valuation and government registration fees, plus break costs if you’re on a fixed rate. On a $600,000 loan, a 0.5% lower rate usually recovers $1,000 to $2,000 of switching costs within a year.
6. Get help if you’d rather not do it yourself
A broker can request pricing from your lender and others, and handle a refinance if needed.
7. Review regularly
Lenders rarely cut rates for existing customers unless asked. Put a reminder in your calendar to review your rate every 12 months, after each RBA decision that affects you, and whenever your LVR improves.
Frequently asked questions
Will my bank lower my rate if I ask?
Often, yes, especially if you have a competing offer, a good repayment history and an LVR of 80% or less. Banks would usually rather discount your rate than lose you to another lender. If they won’t, refinancing is the next step.
What rate should I ask my lender for?
Ask for the rate your lender, or a competitor, is offering new customers with the same loan size, LVR, purpose and repayment type. Have specific offers ready. As a guide, the lowest advertised owner-occupier variable rates were around 5.79% in October 2026, compared with a 6.63% average.
How often can I ask for a rate review?
As often as you like, but once a year is a sensible habit, plus whenever something changes: an RBA decision, a lower LVR after a revaluation, or a better offer from another lender. There’s no cost to asking, and it doesn’t affect your credit score.
Sources
- Canstar, Average home loan interest rates, as at 2 October 2026
- ASIC Moneysmart, Switching home loans
- Reserve Bank of Australia, Monetary Policy Decision, 29 September 2026
General information only. It does not consider your objectives, financial situation or needs and is not credit, tax or financial advice.