For most Australians, rent or mortgage repayments are the highest cost of living expense they have.

With money an issue for so many people right now, real estate expert and Founder of Aus Property Professionals Lloyd Edge has put together his top tips for how people can negotiate their rent or mortgage repayments.

His insights include:

• When you’re renting, or paying a mortgage it is typical to feel like the ‘small guy’ and wonder what control or power you have, if any at all, over what your rent or mortgage repayments will be. But, it is your hard-earned cash so you actually have more power than you may realise!
• For renters: instead of paying the annual increase, ask for a breakdown of the increase, and question it if you don’t feel it’s justified. If you feel you are paying too much, send a letter or formal email to your agent stating why you don’t feel this is justified and send it alongside similar properties that reflect the price point you believe is reasonable. Always send three examples, and always request a reply with a deadline date, otherwise it can typically drag on while you’re waiting for a reply.
• For mortgages: the first point of call is always to call your lender. But first, do your research. Find out whether new customers are actually getting a better deal from your lender and play the loyalty card. Call your lender and tell them that you are looking for a better deal and if they have anything on offer. If you’ve been a loyal customer for a while, they might be able to offer you an interest rate reduction for your loyalty. This would be a quick and easy conversation to have with your lender.
• Another option is to seek the guidance of a mortgage broker. Mortgage brokers will have access to around 30 or more lenders and be able to see whether you are eligible for a better arrangement with another lender. A mortgage broker will guide you through the whole process of switching to a different lender and make the process really easy for you. If you’re with one of the big banks, it is often the smaller lenders (who are backed by the big banks) that might be able give you a better deal if you switch.

Have you successfully spoken to your bank about reducing your mortgage repayments? Was it a difficult conversation?