Review your Home Loan
Review your lending & it's structure
It’s really important to regularly review your lending and with a few changes in our system, we’re looking to do this better and provide more support for you. With rates having increased significantly in the past 18 months, we’re also supporting our clients to ensure they’re in the best possible position heading forward.
Some things to consider;
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?
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.
You can also book a call with your advisor here and we can have a 15-minute chat about where you’re at.
Refixing your lending
Rates have been increasing considerably for the past year or so and we’re aware that for some, this is having a considerable impact on repayments. There are some levers we can pull for you if you’re in this situation and are significantly impacted, so please feel free to get in touch or book a call here if you’re concerned about your budget.
In the middle of 2023, the Reserve Bank raised the OCR to 5.50% and most economists and banks are predicting this will be either the peak of interest rate rises, or very very close to it. With banks now offering longer-term rates (3-5 years) more cheaply than shorter-term rates (1-2 years) we’re expecting rates to level off and start to fall away towards the start/middle of 2024.
Interest rate update for December 2023
In general terms, this means that a 1-2 year fix will likely allow you to take advantage of dropping rates in 6-12 months' time. However, it’s really important to consider your own situation and budget when making this decision, as the certainty of payment may be more important for you.
For a more detailed chat on the current economy and our opinion on how this affects mortgage rates, have a look at our video.
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.