Did you know that getting a better deal on your existing home loan doesn't always mean switching lenders.
Refixing:
Most homeowners set their mortgage rate for a fixed term on a rolling basis and do not challenge the lender rates or adapt their mortgage to their changing needs. When you refix your mortgage, you can, and should, take advantage of the market movements and reduce your offered rates.
Just like banks change interest rates, your financial situation will change too. At Murtaghs we look to find an opportunity in that time of change to shape your mortgage and save you money. If interest rates have dropped and you are near the end of your fixed term you can choose to refix your loan at a new rate.
Refixing your loan means you stay with the same lender and make an agreement not to change the loan for a period of time. In return the bank will fix the interest rate and repayments, usually at a much lower level.
Refinancing:
Sometimes when options are looking thin on the ground, refinancing can provide some relief from a cashflow perspective, and help you reach your financial goals much more quickly. This is the perfect chance to tip the balance in your favour.
What are the options:
- Freeing up extra money for a renovation or holiday
- Decreasing your weekly mortgage repayments
- Breaking your mortgage to get a lower interest rate
- Paying your mortgage off faster
- Planning your retirement
- Purchasing an investment property
When you refinance you end your mortgage with the current lender and replace it with a loan at a different lender. This means you have more flexibility to change the terms and repayments of the mortgage as well as the interest rate.
When working with us, together we will decide what is the best option for you. There are some things to consider such as, ‘break fees’, repaying a ‘cash back’ and the extra legal expenses. We will also consider whether your plan is to become debt free faster.
While all of this may seem quite daunting, we are here to help guide you through the process and figure out what is the best choice out of all your options.
If you’re not sure what’s involved or whether it’s right for you, have a chat with us and we’ll see if it’s worth adding to your finance toolbox.
P: 07 838 3883
www.murtaghs.co.nz/con...
