Borrowers agitating for better mortgage deals are saving $2000 a year

Home loan borrowers who simply ask for a sharper interest rate are saving more than $2000 in annual repayments without refinancing, giving loyal customers the edge as banks fight to retain borrowers in a climate of crumbling profit margins.

Analysis by Sherlok, a start-up whose software helps mortgage brokers negotiate home loans, shows lenders are willing to slice an existing mortgage rate by 0.46 percentage points, on average, when a customer, or their mortgage broker, contacts the bank and negotiates on price.