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.
“In my 20+ year experience applying for new mortgage or refinancing, I have dealt with numerous bankers and Mortgage Advisers. Wayne Tu is definitely the best I have come across with. He is very approachable with a helpful attitude to solve the problems. He is honest about what can be achieved and why a solution is recommended. I feel it’s easy to deal with Wayne and makes the whole process pain free. Thank you Wayne and definitely recommend.”
- Nathan
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 built up equity in your existing property, you may be able to access that equity to help fund the purchase of a second home or an investment property.
This allows you to use the increased value in your current home as part of your next property purchase.
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.
Unlike in countries such as America, in New Zealand, refinancing your mortgage is 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.
Whether you’re looking for expert mortgage advice to get you into your first home, or you’re upgrading, refinancing or looking for an investment property, our experienced team can help find the right solution for you.
