Home loan Expiring Soon?
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Refixing Your Mortgage
Refixing Your Mortgage
When you come to the end of your home loan’s fixed interest rate period, you might want to consider refixing or refinancing your home loan at a more competitive rate. Don’t let your annual reviews cause you any stress. The team at Futurebound can take care of it for you.
What is the difference between refinancing, refixing and restructuring my mortgage?
Refinancing your mortgage (aka remortgaging) is when you switch your home loan to a different bank. This decision is usually based on what another bank can offer you i.e. a better rate locked in for a longer-term, the ability to borrow more against your property etc. You can check out how much you could save by switching banks by using our mortgage repayments calculator.
Refixing your mortgage means you stay with the current bank lender your mortgage is with and make an agreement not to change the loan for a fixed amount of time. In return, the bank will fix the interest rate and repayments at a lower level.
Restructuring your mortgage can happen when you’re refinancing or when refixing your loans. First, we’ll review your current mortgage structure, and then suggest a new structure of the loans to make sure you’re paying the minimum interest on the loan and, in most cases, paying off the loan faster than the default number of years given by the bank. There are many different types of loan structures to consider. We can assist you in deciding what will be the best fit tailored to your personal circumstances.
Pros and Cons of Refixing Your Mortgage
PROS
The main advantage of a mortgage on a fixed rate is repayment certainty. For a set period, you’ll know exactly how much your repayments will be. This makes household budgeting a lot easier.
During the fixed interest term, your loan won’t be affected if the banks increase their interest rates.
CONS
The main disadvantage to refixing is you can’t opt out of your fixed term – unless you pay a break fee, which could negate any potential savings.
Refixing long-term means you’ll miss out on a better rate if banks lower their interest rates.
The Process of Refixing
01
Book a free 15-min mortgage chat with Futurebound 2 months before your fixed rate expires
We’ll talk through your options for refixing, refinancing and/or restructuring your mortgage based on your financial goals and situation to make sure you’ll pay the least amount of interest.
02
Negotiations and Confirmation
If the best plan for you is to refix, we’ll make sure you get the best interest rate your bank has to offer you. You’ll also get our advice for which fixed rate term is best for your situation and plans for the future.
03
Submission
Once we’ve received your confirmation of your refix instructions, we’ll help you refix your loan in your bank app or submit your instructions to the bank on your behalf.
04
Final Stages
Your new fixed rate term will be finalised and your new mortgage repayments will be set up and ready to go.
Keen to get Started?
Keen to get started on refixing your home loan? Book in a 15 minute chat with us now.
Benefits of Using Futurebound
Buying a home is the biggest purchase most Kiwis will ever have. The right advice and guidance can mean the difference of $100,000s.
$0 to get started promise
You see the value before we get paid. Since banks pay us a commission, most Kiwis pay nothing out of pocket for our mortgage services.
High approval rate
We are committed to getting you approved for the home loan you need. Obstacles don’t intimidate us!
Free mortgage debt reduction advice
All mortgage services come with access to our Fast Track My Mortgage Plan (valued at $2000) absolutely free! This guide will help you pay off your mortgage up to three times as fast, saving you tens of thousands of dollars every year in interest costs.
Stay on track towards financial freedom
Each year you’ll receive a comprehensive review of your mortgage including equity position, ability to buy your first or next investment property, insurance review and an update on your mortgage debt reduction plan.
Winning with Property Blog
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“Don’t leave your financial freedom to chance, Jeff is incredibly knowledgeable and passionate about helping build a better future. Highly recommend Jeff and the team if you have a property and are looking to increase your wealth by looking at buying an investment property. With Jeff’s help it is easier than you may think!”
Kayla
“He arranged loan approvals from multiple banks with best interest rateJeff was very helpful and supportive to us in buying our first home. He arranged loan approvals from multiple banks with best interest rates. Very patiently answered all my stupid questions and advised us on bank loan repayments and finance planning. This actually helped us a lot to get through the stressful times. I would definitely recommend to anyone wants to get into the market.”
Ram
“Jeff is a really nice and considerate guy who really has your best interests at heart. He’s helped shave off tens of thousands of dollars of interest repayments, as well as helped me understand and implement ways to cut my mortgage repayment timeframe by about two-thirds. Thanks, Jeff and the team!”
Rawiri