Review your home loan
Review your lending & it's structure
It's really important to regularly review your lending and ensure it is working in the best way to align with your goals and personal situation.
With rates starting to creep back up. We want to ensure you're in the best possible position heading forward and are here to support you in this process.
Things to consider
Some of our clients are keen to look at other bank options for their lending and we’re happy to look at that for you. For the majority of these situations, we’ve been able to secure a new approval and a slightly better rate, and given we’re still a few months prior to expiry there is plenty of time to get this sorted for you.
What this involves is a new application (bank statements, payslips, etc), so if you’d like to look at some other options, we can get that process underway.
Are you looking to borrow additional funds in the near future?
Have your financial goals changed?
Are you considering a new purchase or selling and buying?
Are you thinking of selling or changing anything big financially in the next few years?
Has anything changed with your family situation or income?
Do you have an interest-only term expiring soon?
Refixing your lending
The OCR is now sitting at 2.75% after the Reserve Bank lifted it again on the 2nd of September, the second increase in a row following July's move to 2.50%. With inflation running at around 4% and expected to stay above 3% for the rest of the year, it's likely we'll see the OCR pushed higher again before Christmas. Most of the major banks are picking a hold at the October review, then an increase in December.
Rates crept up across the board through August and are currently holding between about 4.50% and 5.50% across the main terms. With that in mind, it's an awesome time to lock in a bit of certainty, or potentially split your lending across various terms to balance the risk in the short versus the long term. If you're accepting lending or coming up for a re-fix, earlier rather than later is a good idea.
The key factors driving this are global pressures, particularly offshore conflict and fuel prices, so there's still a fair bit of uncertainty ahead. The awesome news is we're not expecting a return to the highs we saw post covid. Rates in the high 6's or 7's still look very unlikely. The next review is on the 28th of October.
Overall this means getting personalised advice is really important with people favouring a bit more certainty over some of the shorter term options but this needs to align with your goals as well.
Book a call with an Adviser
For a more detailed chat on the current economy and our opinion on how this affects mortgage rates, have a look at our video above.
Most banks will send you an email 45-60 days before your rate or interest-only period is due to expire, and the majority of the time, these are competitive and in line with what we’d expect from other lenders.
If there has been no change to your situation and you’re keen to get a new rate locked in, feel free to screenshot us these rates and we can make sure they’re competitive.
Generally, you’ll get a notification coming up on your banking app which will show you the different options for fixed terms and what your new repayments will be once you’ve fixed.
We’re always here to help if you’d like advice on which terms you should be considering for your situation so please do reach out.
