If you currently have a mortgage or you are looking to buy your first home, then now is the time to examine your loan structure and potential.
Why is that?
Put quite simply, the interest rates have never been better.
Taking out a mortgage, refinancing or refixing can all seem complicated and time consuming to navigate. Many people put it in the too hard basket and just leave things the way they are.
But, you could be saving a significant amount on interest and Mortgage Suite is here to help you do it.
Let’s look further into why now is the time to buy a home, why it is also the time to refix your mortgage rates, and how you can secure the best rates possible.
Should I Buy Now?
So, should I buy a home now? The short answer to this question is yes. But only if you are in an appropriate position to do so. Even though the rates are low, you still need to be able to service the repayments without putting yourself into financial trouble.
Working with us here at Mortgage Suite will help you to understand what your borrowing power is and the kind of home you could purchase. You might be surprised at what is available for you if you are armed with all of the right information.
Why is now the time?
Well, the interest rates are at an all-time low. For some loan terms, they have dipped below 4%. That means you have to invest less into paying interest to your lender and more can go off the principal amount that you initially borrowed.
If you can afford to pay more than the minimum amount, then you can shave years off the term of your mortgage and save thousands of dollars in the process.
With government support, more leniency in lending from the banks and Kiwisaver first home schemes, there are plenty of ways you can get the help you need to reach the first rung of the property ladder.
Should I Refix My Mortgage?
If your mortgage rates are coming up for renewal soon then you should be clapping your hands gleefully, as you are about to secure a great rate. If you use the help of a mortgage broker, then it could be even greater than the advertised rates too!
But all hope is not lost if your rates don’t come up for renewal for a while. With rates as good as these, it can be worth exploring the option of breaking your current rate, paying the break fee, and fixing at a lower rate.
While there is the upfront cost of a break fee, you could save more money over time by having a lower interest rate. We can help you determine that at Mortgage Suite by crunching the numbers. We can look at the cost of the break fee and compare it to the long term savings you would make with a lower interest rate and advise you accordingly.
In some circumstances, it is not worth the cost of the break fee, but you won’t know that unless we do the investigation first.
How Can I Get The Best Rate?
It takes a lot of time and energy to research the different interest rates offered by the main and second tier lenders in New Zealand. After all, there are more than 20 of them! And, you will probably only be offered the rates advertised on their websites.
If you let a mortgage broker do the research for you, not only do you save time, but you could get a better deal too. Because of our professional position and the relationship we have with the various lenders, we have access to rates that are better than the ones you see advertised on the lending websites.
Sometimes the best deal does not only mean the lowest interest rate. You also need to take the structure of the loan into consideration. Depending on your personal situation, you may decide to fix your loan for a set period of time for certainty. Or, you may decide to have a portion on floating so that you can make extra payments without penalty. Or even have an offsetting account where your personal savings can decrease the amount of interest you will pay.
A mortgage broker can help you sort through all of the available options and choose the one that is going to work best for your personal situation.
So, if you would like to see what options are available for your current mortgage, or if you are hoping to secure your first mortgage, then get in touch with us here at Mortgage Suite.
We will save you time, stress and energy, and also secure you the best solution for your situation.