Refinancing, Refixing, or Restructuring Your Home Loan?
The right structure can save you thousands
The way your home loan is structured can make a huge difference to the amount of interest you pay over time. When structuring a home loan thought needs to be given to:
The mix of fixed and floating rates.
The length of your fixed terms.
Whether or not you would benefit from have a revolving credit facility.
Your stage of life and your financial goals.
Despite these considerations, many homeowners stick with the same setup year after year, unaware of the potential savings a smarter structure could bring. That’s why it makes sense to let your Futurisk mortgage adviser help you reassess your mortgage structure in light of current rates, lifestyle changes, and financial goals.
Peace of mind in uncertain times
Finally, a mortgage is the biggest financial commitment most of us will ever make. Let’s face it, even an average sized mortgage is a lot of money. It’s no wonder some people feel overwhelmed. Getting professional advice from your Futurisk adviser will give you confidence that you’re making informed decisions.
If you’re about to refix or restructure your home loan, or if you or someone you know is about to take out a new home loan, get the best advice you can – talk to your Futurisk qualified mortgage adviser.
Good Advice Matters
Good news! Interest rates are finally starting to ease. That means, many Kiwi mortgage-holders are asking whether now is the right time to restructure, re-fix, or refinance their home loans. While lower rates can offer the opportunity to reduce your monthly repayments or pay off your mortgage faster, navigating the options isn’t always straightforward. That’s where good advice from your Futurisk mortgage adviser can make all the difference.
Here’s why good mortgage advice is essential:
Every mortgage is different
Home loans aren’t all the same. That’s because, when setting up a loan, your current financial situation, your long-term goals, and the structure of your existing loan(s) are all taken into account to ensure the best move for the next period of your life. But situations change as we go through various life stages.
Depending on your current situation, it may make sense to break your fixed-term mortgage and lock in a lower rate. However, not always. Breaking a loan early can trigger costly break fees that outweigh the savings.
You Futurisk mortgage adviser will help you calculate the real costs and benefits, and tailor a strategy that fits your situation—not just for now, but for the years ahead.
Timing is everything
The Reserve Bank signalling a lowering of the OCR (Official Cash Rate), is good news and we would expect interest rates to gradually trend downwards. During times of adjustment in interest rates, banks move independently and those movements can be unpredictable. So, when should you refix or restructure your loan?
The temptation is always to grab a lower interest rate as soon as you see one. However, fixing too soon or for too long can mean missing out on later interest rate decreases.
Your Futurisk mortgage adviser will track market trends, explain what’s likely to happen next (although there are never any certainties), and help you strike the right balance between risk and opportunity.