Refinancing in the current market
Q: Are there any options for people who are struggling with their mortgage repayments?
A: There are quite a few people coming off the sun 3%pa fixed interest rate over the next few months who will be re-fixing on rates form about 4.85%pa.
This does mean an increase in mortgage repayments for many which may cause some financial stress. Some solutions that may alleviate some of this pressure could be:
To extend the term of your loan
Consolidate short-term debts
Apply for an ‘interest only' period on your home loans
You need to be aware that if you take one of these up, you could end up paying more interest over the full term of the loan.
Another solution could quite simply be to go through your spending and find areas where you can cut back.
Q: Why use a mortgage adviser over going direct to the Bank?
A: There are a number of reasons.
My key picks are:
Our job is to take your stress away from getting finance.
We find the best solution that meets your needs because we are not limited to one lender.
With access to many Banks and Lenders, we know their lending criteria inside and out which means we can place you with the right provider from the start.
We present your application in the best light to the Bank in their language.
Finally, we help you navigate through lending and regulatory criteria.
Good examples of this are the Kainga Ora initiatives available - there are a few that have similar criteria, this is confusing to those not familiar.