Reduce your interest rate with one phone call?

With official interest rates on the move, shrewd mortgage holders may take the opportunity to call their lender to ask for a better deal.

But when even a small interest rate reduction means potential savings of thousands of dollars, is a simple phone call really enough to get you there?

While a number of lenders offer lower rates to new customers, it’s not always so simple for existing customers to secure the same outcome.

If you're looking for a better deal on your mortgage, there are basically two options:

• Call your bank and ask them to match the new rate.
• Contact your broker and vote with your feet.

Although the first option is commonly recommended, lenders aren’t always so obliging when it comes to rate-matching to get you a more affordable mortgage.

Lenders regularly try to ‘win’ new customers by offering low rates, but if they refuse to match your current rate to this new offer, you can always contact a finance broker and refinance with a lender who is hungry to win your business.

Mortgage brokers have access to a range of lenders and products, and are also in a position to offer you a more in-depth and customised level of service. This can allow them to find their customers a mortgage product that may suit their current needs, wants and circumstances.