Scott Pape, aka the ‘Barefoot Investor’ recently sent an email to his tribe with the subject line: “The 4 cheapest home loans on the market in June.”
You can read snippets of it in
at Yahoo Finance.
Before we go any further, let’s get one thing clear. I’m a Barefoot convert and a big fan of Scott’s teachings. Here’s the proof (you’ll understand if you’ve read the book):
But back to the email.
There are 3 really important things about his email.
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The real reason he didn’t get them all right is because it’s way more complicated and way more time consuming than it should be for people to find their best deal.
We’ve been building this capability at
for the last 3 years and we don’t even have 100% of the market covered.
The difference with UNO is you can scan the market in seconds rather than days or weeks…
Which brings me to:
(I’ll come back to 2 in a minute because it’s super important.)
Even though 2 of those 4 deals are some of the cheapest in the market, that actually means nothing in relation to your personal circumstances.
Scott’s point is this, and it’s a very good one:
’ lowest interest rate is.
Your address, your income, the number of dependants you have and the current deal you have with your current lender are all different to the person next to you and all impact your eligibility for specific deals.
So, even though we have interest rates right now from under 3% you should take that with a grain of salt until you
because your best rate could be very different to ‘The’ best rate.
This is one of the reasons comparison sites are finally getting a bad name. Comparison sites show low
and sell your clicks to the highest bidder, even though that click may be a complete waste of your precious time, because the rate is simply irrelevant to you based on the lender’s eligibility requirements…
This is also the reason the ACCC absolutely smashed
stated that:
but definitely monitor your personal situation and be on the lookout for a better deal.
You can do this for free using a tool called loanScore.
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Let’s finish up with point number 2. The ‘$22,064 phone call’ script.
It’s a great script and if you like being the negotiator you should try it, but as Scott says, it’s a “well-worn script”.
On top of that, we found that 50% of the 1500 mortgage holders we surveyed recently were afraid to discuss their finances with their bank or broker.
So, if you’re the type of person who would prefer to leave the negotiating to the professionals then we’re happy to make the call for you.
Because we’re dealing with lenders every day we not only know the price they offer customers but the price they don’t tell customers about … (remember the ‘discretionary pricing’ I mentioned above?)
You have to know when you can ask for it and how much you can ask for.
Some lenders offer it and some don’t. We’ll keep them honest for you and give you your best chance of getting a great deal!
All you need to do is:
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