By Charlotte Shipman
There has never been a better time than right now for those who have or want mortgages.
As banks compete to keep their profits growing they need to make sure they do not lose customers - and this means the customers have the power.
Joshua Aplin secured a 100 percent loan to buy his first property and he did it on his terms. The 23-year-old negotiated with his bank and it dropped its rate by a quarter of a percent.
“They wanted my business, so I asked them for the discount and they gave it.”
He also avoided the bank's usual additional charge for borrowers like him, who do not bring much, if any, equity into the deal.
“It was quite easy,” Mr Aplin says.
Financial commentator Bernard Hickey says more mortgage holders should demand better rates.
“The banks, quietly, are giving much better than their advertised rates to customers who ask and that's because they can afford to.”
What they cannot afford is to do is lose customers - so they will to do their best to match or better other banks' deals.
Kiwibank is leading the rates drop, currently offering a 4.99 percent fixed rate loan for one year - in just over two weeks the deal has signed up $110 million. It says with that rate it is still making a profit.
All of the leading banks 3 News spoke to told us the advertised rates they offer are not set in stone and there is almost always room for discretion, especially when it comes to customers who have been with bank a long time.
One bank even said what they advertise should be seen more as a guide.
However, not everything is negotiable.
A contract is still a contract and you cannot get out of the rate agreed on for a fixed term loan until it expires, unless you are willing to pay a penalty.
3 News