Your mortgage is likely to be the biggest financial commitment you make in your lifetime. And for many people it can be a source of stress.
Is your bank giving you the best deal when it comes to interest rates? Should you commit to a fixed term or stick with a floating interest rate? Have you chosen the best repayment schedule? Are you ‘trapped’ in your fixed-term mortgage? Is there a better deal out there?
If you are borrowing hundreds of thousands or millions of dollars for your mortgage, these decisions can add up to thousands or tens of thousands of dollars.
Instead of being a source of stress your mortgage should be a tool that you use to improve your financial position and feel secure in your home. If you’re not a financial-whizz it can be difficult to know where to start.
2020 in review
2020 has seen significant changes that offer both challenges and opportunities - this can complicated decisions when it comes to your finances and mortgage.
The impact of the COVID pandemic was wide reaching and unprecedented. New Zealand went into, and came out of a recession within the space of a year. Depending on the industry, many of us faced job insecurity and our financial confidence took a hit, with many taking the option of a 6-month mortgage repayment holiday. The impact on the wider market as the 6-month mortgage deferral periods come to an end will be seen in late 2020 and early 2021.
Conversely, already low home loan interest rates plummeted, putting lower mortgage repayments within reach of many homeowners.
Unexpectedly, following a collapse in sales activity and prices in April and May, the housing market has rebounded and continues to perform strongly. House prices in many areas of the country continue to rise with many hitting record highs. The Reserve Bank announced its intention to restore LVRs (Loan to Value Ratio rules) in an effort to slow soaring house prices.
There are many ways that the changes of 2020 may impact your personal situation and the best course of action when it comes to your home mortgage. This is an ideal time to review your existing mortgage and explore ways to optimise it.
Is your mortgage working for you?
Making decisions about your mortgage doesn't need to be a source of stress. The easiest place to start is to review the health of your mortgage with a Money Compare recommended broker. Money Compare can connect you with a specialist mortgage broker, this independent expert can walk you through every step of the process, with no fee for the service
Intelligent, personalized advice from a professional mortgage advisor can help you restructure and refinance your mortgage so that it works for you, rather than the other way around. With the right advice, you may be able to pay down your mortgage quicker, lower your monthly repayment, or reduce your interest payments.
Working with a Money Compare recommended broker is simple, easy and free. Begin by answering a few quick questions to help us understand which mortgage broker best suits your needs. Simply complete our short form and one of our experts will reach out within 24 hours to help you through the entire home purchase or refinance process.
Start your New Year with a mortgage that works well for you, improving your financial security in the long-term as you enjoy the benefits of living in a home that you love.
