Most people we help already have an existing mortgage
Refixing or refinancing your existing home loan
Often we set and forget our mortgages, waiting until the fixed term rolls around, comfortable with known regular repayments. While this is fine, it can mean you are effectively gambling. You don’t get to take advantage of market movements when they are favourable for you and risk having significant increases in payments for the next term.
Do you want to gamble with what’s often you’re single largest investment?
Every so often it can be a good idea to look at refinancing your existing mortgage. You may wish to do this to get a better deal, to release some equity from your current mortgage, or even to consolidate your debts. Whatever your reasons, mortgage refinance can provide you with greater flexibility and many other considerable benefits.
Most banks offer varying cash incentives to help entice customers to reﬁnance their mortgage and change lenders. In some cases, these incentives can be big enough to cover the costs of breaking your loan agreement plus any legal fees, while still leaving cash in your hand. So not only might we get you a better rate, but refinancing might get you a little cash back as well.
Restructuring Existing Mortgages
Mortgage restructure is all about arranging your home loan in the correct combination. This includes the mix of fixed and floating interest rates, selecting the right term for the fixed portion of the loan and setting the appropriate loan repayment amounts with the objective to save money in interest repayments, reduce the risk of interest rate fluctuations and pay off the mortgage quicker than the standard 30 year term given by the bank. A dynamic split loan structure tailored for your personal situation can be a little tricky, but that’s where you can rely on our expertise.
Negotiate the terms when re-fixing
When any ﬁxed rate mortgage is coming to the end of its term, your bank will try to determine your new rate. Often a mortgage broker can negotiate a better ﬁxed rate on your behalf, and because we understand your ﬁnancial goals better than your bank, we’ll work towards getting the deal that best suits your situation.
To fix or not to fix?
While having a ﬁxed interest rate and ﬁxed monthly repayment is great for your peace of mind, there are some disadvantages. Fixed rate home loans often have less ﬂexibility than a variable rate loan arrangement. You may be restricted from making extra repayments and, if the interest rate falls, you will miss any incremental savings.
A smarter way is to consider a combination and splitting your home loan. This type of arrangement allows a portion of your loan to be paid at a ﬁxed rate and the remainder paid at a variable rate. This will give you some reassurance in knowing roughly how much you will need to pay each month, as well as enabling you to take advantage of ﬁnancial savings if interest rates fall. If interest rates rise, you’re also protected as only part of your loan is affected. The key is limiting your exposure.
We can help advise you how to do this.
Why should I refinance my mortgage?
Reasons for refinancing a home loan are diverse but generally, you may be looking to achieve one of these objectives:
• Secure a lower interest rate and get some cash – it’s a competitive loan market!
• Reduce interest charges through Debt Consolidation (of credit cards, hire purchase, car loans, student loans etc)
• Access new Home loan features other banks may now offer
• Pay off your mortgage quicker (restructuring)
• Diversify to additional lenders or switch from non-bank lender to mainstream bank
• Your current Bank not giving good enough service
How do we help you? If we have a relationship with your bank and you’re happy with them, we will approach them for a better deal than your current one. We’ll also approach other banks with the same request on your behalf. Ethically, what we won’t do is share the deal one bank has given with another bank, as it would reduce our negotiation power.
What do I have to do if I move banks? Your solicitor will contact your old bank and arrange the move for you. You'll need to advise your employer of your change of bank details and close any personal accounts, change any direct debits etc. We look forward to meeting with you at least annually to review and discuss your situation and assess if any changes may be worthwhile.