Are you thinking about remortgaging your house? If you are seeking a better deal on your existing home loan, or looking to free up equity, Personalised Mortgages has the expertise to assist you. With our decades of experience, we can provide tailored solutions to fit your individual mortgage refinancing requirements.
When you remortgage your home, you take out a new loan with your current lender or a new one, and you use it to pay off your original mortgage. Refinancing your home allows you to shop the market for better mortgage rates, without being limited solely to offers from your current mortgage lender.
There are various reasons why you may wish to consider refinancing your mortgage. You may want to save money by securing a more competitive interest rate or change your loan structure to better suit your circumstances. For example, while refinancing, you may wish to change from a floating to a fixed-rate mortgage, or vice versa.
Another common reason people choose to refinance their mortgage is a change in financial situation. Mortgage refinancing allows you to adjust your mortgage term to repay your loan over a shorter or longer period. A lower mortgage rate, or shorter loan term can significantly reduce your long-run interest costs.
If you have increased the equity in your existing property, you may be able to borrow against that value in order to purchase a second home or investment property. In New Zealand, this process is usually referred to as a mortgage top-up. You can learn all about mortgage top-ups here.
Significant home improvements generally don’t come cheap, so one option is to borrow against your home’s equity in order to fund renovation work. This is commonly referred to as a mortgage top-up. For more information regarding loans for renovations, click here.
If you pay off your mortgage early through refinancing, your bank could possibly charge you an early repayment fee, also known as a break fee. Break fees are highly variable and they are calculated based on a range of complex factors including your remaining balance, remaining term and interest rates on the day.
Take the next steps. Once you have established that you want to go ahead with refinancing, we will assist you to complete the application process and submit the necessary documentation for your new home loan.
Refinancing a mortgage can serve a number of purposes including securing lower interest rates, paying your loan off faster, or reducing your monthly mortgage payment. When considering refinancing your mortgage, it is often worth speaking to a qualified mortgage adviser who can help find a loan rate and structure best suited to your needs.
Depending on your specific requirements, refinancing can help you to save money by lowering your interest rate, your monthly payment amount or your overall loan amount. Releasing equity can also help you to achieve your financial goals or meet your financial commitments when faced with changing circumstances.
The most common reason for refinancing a mortgage is to take advantage of the best available interest rates, which can save money on your home loan in the long term. Refinancing to attain a smaller monthly mortgage payment can allow you to save or invest more money, at the expense of having to pay off your mortgage for longer.
Unlike in countries such as The United States, in New Zealand, refinancing your mortgage is very unlikely to negatively affect your credit score. If you’re concerned about any potential impacts from refinancing your mortgage, talk to a professional mortgage adviser.