Independent mortgage advice for refixing, refinancing, and restructuring your mortgage
The New Zealand mortgage landscape is dynamic, and the days of static and predictable interest rates and limited options are gone. With the help of a qualified Registered Financial Adviser and Chartered Accountant from adviceHQ, you can navigate the complexities of refixing, refinancing, and restructuring your mortgage to potentially save thousands of dollars and achieve your financial goals.
1. Refixing
Refixing involves securing a new interest rate for a predefined term on your existing mortgage with your current lender. This is typically done before your current fixed-term rate expires.
Benefits:
- Lock in a favourable rate: If you anticipate rising interest rates, refixing can offer stability and predictability in your monthly repayments.
- Access better rates and incentives: With adviceHQ’s expertise and lender relationships, you may qualify for better rates and even cash incentives compared to negotiating directly with your bank.
Considerations:
- Break fees: Early refixing may incur break fees from your current lender, so weigh the cost against the potential benefit of a lower rate.
- Term length: Choose a term that aligns with your financial goals and risk tolerance.
2. Refinancing
Refinancing involves switching your entire mortgage to a new lender who offers a more competitive interest rate and potentially better loan terms.
Benefits:
- Potential savings: Refinancing to a lower rate can substantially reduce your long-term interest payments.
- Access new features: Different lenders offer various features, such as flexible repayments, offset accounts, or bundled products, which may better suit your needs.
Considerations:
- Exit fees: Your current lender might charge exit fees for closing your mortgage.
- New loan application process: Refinancing typically involves a full loan application process with the new lender, including credit checks and valuations.
3. Restructuring
Restructuring your mortgage involves modifying the terms of your existing loan to better suit your current financial situation. This can involve:
- Changing the repayment type: Switching from fixed to floating or vice versa or extending the loan term.
- Capitalising interest: Adding unpaid interest to the loan principal, reducing monthly repayments but increasing overall borrowing costs.
Benefits:
Alleviate financial pressure: Restructuring can provide temporary relief during challenging times by adjusting your repayments.
Considerations:
May not be a long-term solution: Restructuring can extend your loan term and potentially increase total interest costs. Seek professional financial advice from an adviser like adviceHQ to understand the long-term implications.
Important considerations
Consulting a Registered Financial Adviser and Chartered Accountant from adviceHQ can be invaluable when refixing, refinancing, or restructuring your mortgage. We can guide you through the options, compare different lenders, negotiate on your behalf, and ensure you secure the best possible deal aligned with your specific circumstances.
We recommend you seek professional financial advice to understand the full financial implications of refixing, refinancing, or restructuring your mortgage and ensure it aligns with your overall financial goals.
Why trust adviceHQ when refixing, refinancing, and restructuring your mortgage?
By making informed decisions and obtaining professional guidance, you can navigate the complexities of the New Zealand mortgage market and potentially save a significant amount of money over the life of your loan.
If you’re ready to refix, refinance, or restructure your mortgage, partner with adviceHQ and make use of our industry-leading expertise, personalised guidance, and comprehensive suite of services.
Contact us today to schedule a chat and discuss how to achieve your financial goals.
