a family house on a pile of moneyWhen buying a house, getting the most favorable interest rate is the goal. After all, a 1% difference could mean thousands of savings per year, which adds up to hundreds of thousands of pesos when the loan matures. While average Filipino borrowers look for the lowest advertised interest, you might not realize that many rates might be open for negotiation.

Whether you’re speaking with a real estate agent or a bank representative, the other party can get generous if you play your cards right. For starters, follow these pieces of advice to prepare yourself for the negotiation:

Get Tips from Those Who Negotiated and Succeeded

Ask relatives or friends who already did it and snagged a lower interest rate. Of course, your chances of securing better interest depend on your unique situation, but it pays to learn strategies that have been proven to work.

Take the Initiative

Real Estate Hub or any Lancaster review would encourage you to bring it up during the conversation. Even if you’ve never haggled over the price of something in your life, the other party might be secretly waiting for you to start negotiating at some point. It’s perfectly normal, and there’s nothing wrong with it.

Be Ready to Compromise

Don’t ask for better interest if you lack the credentials to demand it. Make sure you have a strong and reasonable case to back up your request. In many cases, the other party might ask for something in return to grant your appeal, like decreasing the loan amount. Keep an open mind because you can’t have it both ways; you might have to lose some to get some.

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Have Options B, C, and D

The interest rates in the country are market-driven, which is why lenders compete fiercely with one another to get as many customers as possible. Use this fact to gain some leverage in the negotiating table. Shop around and talk to different lenders to know their best offers. Then, ask them if they could beat the interest rates others are willing to give. If the other party wants your business bad enough, you might be given more room for negotiation.

Repaying a housing loan can be a 20- to 30-year commitment. Managing to bring your fixed interest rate down could suffice to keep a serious amount of money in your pocket for a long time.