Is it okay to let my bank know who offering me better rate

[wll6568]

Hi all, I have been approached by a bank (which owns my current bank), with a better rate. I asked my current bank if he could match the rate. He asked for who in that bank approached me.

Just wondering if its okay for me to tell him? Or better to keep it to myself?

 

[Peter_Tersteeg]

It's okay. Lenders do (or should) have a fairly good idea of where their competition is, if you're telling them rubbish they'll know it as well.

When brokers negotiate rates, we're often asked for a 'competitive justification' to another lender.

 

[Jamie M]

Why did the other bank call you? Do you have other loans with them?

I would tell your current lender - use it as leverage for negotiating down that rate.

Cheers

Jamie

 

[wll6568]

Why did the other bank call you? Do you have other loans with them?

I would tell your current lender - use it as leverage for negotiating down that rate.

Cheers

Jamie

Cuz I went in and ask for refinancing quote to see if I could get better rate on my current loans.

 

[Corey Batt]

Cuz I went in and ask for refinancing quote to see if I could get better rate on my current loans.

Be careful if you are going to 'shop' around - you don't want them getting to the point of putting credit hits on your file. If this came up multiple times before you know it you will seen as a leper.

If you're purely focused on seeing what the market can offer you in terms of rates, the most time efficient means is going to be having a chat with a broker who can lay it out on the table for you.

As always, rate isn't everything - if you're looking to expand your portfolio, chasing rates can put you into a corner.