Is It Time to Look At Refinancing Your Mortgage?
Recently we have helped clients finance Sefton Castle, featured on Grand Designs NZ, which is a luxury home with accommodation, secure construction finance for the Manha Hotel at Auckland Airport, and also helped clients achieve a life time dream to purchase a yacht, to sail around the world.
Refinancing is also an option when your fixed rate is about to expire, as we all look around for a better deal, especially now with higher interest rates.
As a Financial Adviser, we are committed to keeping you informed about opportunities that can positively impact your financial well-being. In this blog, we’re excited to share insights about refinancing to help you achieve your goals and how this can play a pivotal role in helping you manage your finances. Refinancing your existing home loan, investment or commercial property could be a strategic move to unlock capital and secure favourable terms for your next project. Whether you’re looking to invest in real estate, expand your business, diversify your investment portfolio, help your family, or travel, refinancing offers a range of benefits.
Benefits of Refinancing
Lower Interest Rates
Taking advantage of current market conditions, refinancing your loans may provide the opportunity to secure competitive interest rates and an opportunity to maybe get a cash contribution that some Banks are offering.
Are you on a high floating rate with a Non-Bank Lender?
We can discuss options to either refinance to a Bank or, what maybe an easier option, to an alternative Non Bank lender with indicative rates from 8.59% p.a. floating and 1 year fixed at 8.69% p.a. (T & C’s apply)
Improved Cash Flow
We are also now seeing more requests for a 12–24-month interest-only period on your Home Loan. Whilst this will increase your repayments once the interest only term is completed, it can give you a chance to get your head above water in the short term.
Access to Equity
By refinancing, you can tap into the equity you’ve built in your current property, allowing you to leverage that equity to access cash to fund new ventures.
Consolidation of Debt
Unlock financial freedom through loan consolidation and refinancing. Simplify payments, explore tailored options, and look at opportunities to refinance up to 80% of your home’s value. Our expertise connects you with lenders who can work with PAYE, self-employed, contract and commission incomes plus understand past credit or repayment issues.
Flexible Terms
Refinancing can allow you to review the terms of your loan to better align with your current financial goals, income position, or investment plans.
Things To Think About & Check When Refinancing
- If you are refinancing within the first 2 -3 years of buying a home your Bank may have a clawback on their “Cash Contribution”.
- What are the clawback terms of any new Bank? Will this impact on your refinancing after fixing for say a 12-month period or are you thinking of selling during the clawback period?
- If you were previously working with another Broker firm, they may also have a clawback on the commission they were paid.
- Moving to a new Bank will usually require having your income credited to the new bank account. This will also mean new Debit cards and possibly Credit Cards, changing any automatic payments, direct credits, and debits.
- You will need a solicitor to assist with the registration of the new mortgage documents. An estimate would be a cost of $2,000 but check with your solicitor first.
Refinancing your Home or Commercial Property may seem complex, but our team of experienced financial advisers is here to guide you every step of the way.
Are you ready to explore the potential of refinancing to better meet your current finances? Contact our dedicated team of financial experts to schedule a personalised consultation. We’re here to help you make informed decisions that align with your aspirations and financial objectives.
At First Rate Mortgages we believe in turning possibilities into realities. Let us be your partner in unlocking new opportunities and achieving your financial ambitions.