Is it time to break up with your Bank?
Refinancing your mortgage could save you thousands, help you build an investment portfolio, or just simply make life easier. But is the time right for you and where should you go?
Long gone are the days of one bank for life, many people now operate several banks day to day and technology has made it easier than ever to switch between banks, move funds and make payments to different institutions. The list of banks is growing, what was once restricted to the “big four”, there are now well over 50 financial institutions in New Zealand, all with different products, solutions (and requirements).
This growing list of lenders is great news for borrowers, it means we can work with your situation, rather than making you work for the bank. Finance solutions can be tailored to suit your needs, providing you with flexibility and options, whether you are looking to start or grow an investment property or help your kids into their first home, the options are now out there.
It would be impossible to talk about refinancing without talking interest rate. In the last ten years rates have gone from over 7% to as low as 1.99%, this represents a saving of hundreds of thousands of dollars on the typical mortgage, and with rates this low, it pays to shop around. With growing competition in the market comes the need to be competitive and changing to another bank can be a great way to save you money, and the process is getting easier and easier.
But there are important things to consider before you go chasing a new bank, firstly, your current situation. Is your existing mortgage fixed? Breaking fixed loans early can incur penalties, so it is important you consider both the costs and the benefits. If you signed up to your mortgage and received a cash contribution from the bank, maybe it paid you original legal fees, or helped with the moving costs. If it was within the last 24 months, chances are they will want you to pay this back.
As Advisors we deal with a growing list of lenders and will work with you to understand your financial situation, your needs and goals and tailor a solution that works for you. Now is a great time to consider refinancing we want to help you achieve more.
Disclaimer: This publication has been prepared for your general information. While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken for any errors or omissions. This publication does not constitute financial or insurance product advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. Publicly available Disclosure information can be found here.