The savings are there, all it takes are some smart tactics and a simple phone call.

• Power town: join forces to save
• Money saving masters
• Banks' tricks and traps

Publicist Shannon Barry tried and saved more than $50,000 - from one phone call - now that's easy money.

“When I called the bank, the person I spoke to gave us a minimal reduction on our loan but they said if we wanted more, then they could take it to a secondary level which we requested," Shannon said.

Rather than risk losing his business - a $570,000 mortgage - the Commonwealth Bank reduced Shannon's rate by a staggering 41 basis points. This reduced the interest he needed to pay on his home loan by $53,578.

Amy and Jared also saved thousands. And while they didn't save as much as Shannon, their mortgage wasn't as big either.

“It's a bit weird ringing them up and asking for a discount, I haven't tried negotiating with the bank before, but it wasn't too bad," Amy said.

By securing a reduction in their rate, their mortgage repayment was reduced by $7269 - enough to fund more caravan holidays with the kids.

"They told us they usually don't do that for existing customers but just because they wanted to keep our business, they would be very kind and drop it."

The Herald Sun's Wes Hoskings says a softening market, combined with abolishing exit fees, has created a good environment for people looking to save.

“The bank is really scrambling for home loan customers. The number of new applications is really drying up, so that means they are going harder after people re-financing their home loans," Hoskings said.

“People are a lot freer to move around and ditch their bank if they are not getting a better deal. You've got nothing to lose and everything to gain."

Money saving expert Ryan O'Connor coached Shannon and Amy before they made the calls. He says it's all about being prepared.

“When it comes to saving money I don't think there are any limits. You can use these same methods for other things like utilities, gas, electricity, mobile phones and broadband internet. Credit cards would be a really good example," O'Connor said.

So play to your strengths - if you've been loyal and always paid on time, banks want your business. Know what the competitors are offering, have a figure and aim for it. And don't take the first offer, they're probably bluffing.

"The negotiation power is all in the consumer’s hand," O'Connor said.

• www.savingmoneyexpert.com.au