If like most Kiwis, you opted for a fixed interest rate when you first took out your home loan, then you probably spent a lot of time shopping around to make sure you got the lowest interest rate available. After all, when you’re borrowing such a large amount of money, even a fraction of a percent can represent a significant long-term saving – or cost!
But once you’ve settled on a lender and your mortgage has been with them for several years, it can be tempting to forgo the process of hunting down the best deal every time your fixed rate is due for renewal. Banks make it extra easy for you to stick with the status quo by sending you a renewal notification with a range of current rates and terms. You just need to pick one, and you’re set for the next few years. It might seem like a great service, but is it? For them, it means less work to keep your business, but for you, it might not represent the best choice, even if it does save you the time and hassle of reviewing every available option and possibly even changing banks. How much is that convenience likely to cost you?
If your fixed rate is about to expire, it’s a great time to talk to us at Best Mortgages. As brokers, we don’t just secure our clients great deals on new mortgages; we also repeat the process whenever their fixed rate is up for renewal. And we don’t just check our wide range of lenders for the best interest rates. We can also look at the structure of your loan to find ways to cut years off your term and save you thousands of dollars in interest.
It might involve splitting your loan into two or three different fixed-rate portions, or splitting it between fixed and floating rates, or even transferring a portion to a revolving credit facility. There are many different options available to you, but not every option will be right for you. Your circumstances may well have changed during your first fixed-rate term, and we’re experienced in making sure you find a solution that suits you now, whatever your current situation. Plus, we’ll sort everything out for you, making it hassle-free.
Give us a call to find out how we can help. From simply re-fixing your loan at the best available rate right through to a complete re-structure and early repayment plan, we can be as hands-on as you like. And best of all, this service is free.