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Can your Mortgage be better?

It's going to come as no surprise that a blog on a Mortgage Broker's website is going to say... OF COURSE YOU CAN!

The question is, how?  

We've got some simple tips below to make your Mortgage better.  These are common mistakes or oversights that a lot of people make and we can fix very easily.

How do you know what a good rate is?

If this isn't something you do every day then it's hard to know exactly what a good rate is.  Just because it was the cheapest advertised on tv or your bank told you it was good that does not mean it's the best possible for you, with your unique circumstances.

Every day we're negotiating with banks on various fixed and floating loan products so we've got our finger on the pulse as to what is a good rate now.  Almost always it's cheaper than what you see on TV but the "by how much" depends on the lender and how aggressive they are at the time, what other banks are offering, how well your application is presented and of course how well you negotiate.

If you've got a $300K Home Loan and you save .20% that's $600 per year.  Not a bad payday for a quick email or phone call!

This one is simple - leave it to us.  We'll negotiate a rate for you at your own bank to make sure you're getting the best.  If your current bank isn't the best then we'll provide some options from other banks.

Is that structure best for you?

Making the most of Revolving or Offset facilities can save you thousands, but only if you've got the spending habits and income to match those products.  What about splitting your lending across different fixed periods?  How long do you fix for?  How frequently you make your payments?  The options are endless.

We're big believers in taking some time to understand the way you best work with your money, what your financial goals are and then finding a home loan structure and product to fit you best.
For example if you're earning regular bonuses we might set you up so you can make some lump sums without penalty.  However if you're on a fixed salary then it probably makes no sense to be paying higher interest rates on some offset/revolving products.

How long you fix your loan for will depend on a number of factors including the market, your current lender's policy and where your life is going over that time.

Another simple fix - Let us ask a few questions about your personal financial position and get you a structure that works for you!  There are hundreds of variables but simply getting those right can save you years off your mortgage and thousands of dollars.

Are you paying high interest elsewhere?

The proliferation of Hire Purchase and Credit Cards over the last 15 years has been phenomenal.  If we can use your Home Loan to reduce your overall interest cost this can make a huge difference to your cost in a week and of course getting you debt free faster.

We did one recently where we refinanced someone's car loan which was @ 15% interest.  It was a $25,000 loan and we saved them about $5000 in interest over the term of that car loan. That $5000 can go straight on their mortgage and they've shaved about a year off their overall loan term. Give it a service! 

Too often people just "set and forget" with their mortgage. It's easy to get complacent with your current bank, after all they send you a letter every month and it's just simple. It doesn't take much to check in on how you're going and that's very simple and quick advice from our end.

So click the contact us tab at the top of this page or send an email to office@mymortgage.co.nz so that we can help you. We'll ask a few quick questions about your current lending, income and financial goals then we can put together a plan to save you some money or generally just make life easier for you. We think that's worth a two minute email from you and we'd love to hear from you

Adam, Claire and the My Mortgage Team