Making your mortgage work for you

It’s 2024. Living costs are high & finances are tight. Is there a way to make your money go a little bit further? Is there a way to make your mortgage better fit your current and future needs?

The answer is yes!

It’s known as ‘refinancing’ and is the process of re-setting your mortgage over a new term, at the most competitive current interest rates, and with repayments that suit you! It also often comes with a sweet cash-back to put some icing on the cake.

 Pros:

1. Cash in the pocket - Most main-bank lenders currently offer between 0.5-0.9% cashback on new lending. Depending on the loan size, this can equate to several thousand dollars in your back pocket. No strings attached provided you aren’t planning on selling/repaying the home loan within the next 3 years.

2. Optimising Repayments - Refinancing gives you a chance to re-set the term, repayment frequency, and structure of your home loan. Doing this with a skilled mortgage adviser can help you to benefit from smoother cashflow, lower interest costs, and a more balanced household budget leading to less financial stress in your life.

3. Consolidate Short-Term Debt - Many Kiwis make use of short-term lending options such as vehicle financing, or personal loans. While these are convenient ways to fund your needs and lifestyle, they often don’t provide the most attractive terms or interest rates. Consolidating this debt into your home loan or “putting it on the house” is an alternative that can help reduce interest costs and make life a little bit simpler.

It’s important to recognise though that refinancing isn’t always the best option and there are some pitfalls to look out for. The first step is to review your situation and work out if it is advantageous or not.

This is where we can help you – a 15 min chat over the phone can help you to better understand your position and options. Get in touch now to see if refinancing is an option for you!

Ben Konings – 020 4112 2481 or ben@mortgagesupply.co.nz.