When a borrower first gets a mortgage one of the top priorities is to get a good interest rate.
At the time of purchase there is always a large focus on interest rates – and understandably so. On a large mortgage, even small savings made on a rate can save a lot of money in interest costs. The mistake that borrowers often make is to focus on interest rates at the beginning of a mortgage but not pay so much attention to them when it comes time to refix.
Refixing with the bank
When a fixed rate loan is coming up to expiry the bank will generally post out a tick-the-box form to choose a new fixed rate on expiry. This is a great service but serves more to make it easy for the bank than to make it beneficial for a borrower.
The banks make money from the differential in rates between what they can borrow funds at and how much they can on-lend these funds out to the public. If you follow this logic through you could conclude that it is not in the bank’s best interests to give the cheapest rates it can. Another issue with simple ticking a rate on a form is that there is no opportunity to discuss the structure of the lending to make sure it is still the best way it can be.
Refixing through a Broker
As Mortgages Brokers/Advisers our job is to make sure that not only do we get you the loan at the beginning of the process but that the ongoing rates and structure are the best for you they can be. As Brokers we do not work for the bank, we work for our clients.
Every time it comes time to refix a loan it is also time to revisit the structure of your mortgage. At this point in time it may be best to split your mortgage total into more than one fixed rate period, add or tweak a floating or Revolving Credit portion and talk about any changes needed to accommodate future plans.
What worked for you even a year ago may not be the ideal structure now.
You get the benefit of all the Broker’s experience and market knowledge.
Getting quotes for discounted rates is as easy as sending us an email. From there we can discuss your situation in a much depth as you would like or we can simply have your loan refixed at a competitive rate. No matter how much help or advise you need, this service will cost you nothing and could save you thousands.
“Refinancing our New Zealand properties with Edge Mortgages was such a simple, overwhelmingly positive experience, that I have no hesitation in recommending them to anyone looking to make a financing change. I was especially impressed by the depth of competence in their organisation – everyone was a pleasure to deal with! A first class business experience, from beginning to end – J and R Nunney.”