Now More Than Ever Clients Need To Know Their Re-fixing Mortgage Options

With interest rates rising from between 2-3% to 6-7% over the past 12 months, some people are now paying an extra $500 a fortnight (mortgages of $500k).

Mandy Jordan of Mortgage & Insurance Supply Southland says never before has she seen such variance in interest rates being offered by banks.

As a result, it was important that clients are aware of their options in the current market to help with the rising interest rate market.

“Interest rates were never going to stay in the 2-3% range but this hike will drastically change peoples budgets and have them worried. The best thing they can do is reach out to a professional and ensure they’re making the best decision for them based on the market at the time.”

Mortgage & Insurance Supply Southland can look at options like stretching loan terms out, consolidating consumer debt onto the mortgage, and in some situations interest only repayments on the home.

“Often we find clients aren’t aware of these options, but simply adding the credit card and car loan debt to the mortgage may mean the home mortgage increase payments are more manageable and stress levels can reduce,” she said.

She’s also seeing 1% cashback from many banks, meaning if you have lending of $500K then the new bank gives the clients $5000 to further entice them to move their mortgage.

If you add legal fees of $1000-$2000, the clients are often better off financially to refinance and have $3000 in their bank account.

Southland is one of two regions that has seen house prices rise in the past year, latest figures from The Real Estate Institute of New Zealand show.

Almost every region saw decreases in house prices except Southland and the West Coast.

Southland’s median sale price increased 2.3%, jumping up to $450,000, while nationally, New Zealand saw a 12.9% decrease, pulling the median house price down to $775,000.

Mandy said property is a long game that comes in waves – Mortgage & Insurance Supply Southland still offer appointments with no cost and don’t charge clients for bank settled lending.

With advisers in Invercargill, Christchurch & Hawkes Bay you can be assured that you will be well looked after from the initial discussion and for every interest rate negotiation moving forward.

Drop her a line on [email protected]