If you have a mortgage, the past few months may have been a confusing time. Interest rates have been rising fast as central banks around the world (including our Reserve Bank) tried to battle inflation, and house prices have softened.
Wondering how to navigate this financial environment? One of your first stops could be with us. As mortgage advisers, we spend all day, every day, in the home loan market, so we can help you to cut through the noise to what’s really important.
Here are five questions you might like to ask us.
Is now a good time to refix?
Mortgage interest rates have increased a lot since the end of 2021. So, if you’re currently on a fixed rate mortgage, it’s quite likely that when that fixed term expires you’ll be facing a higher interest rate.
No one knows how high mortgage rates will get from here – not even economists. However, as mortgage advisers, we can help you understand how refixing your interest rate fits into your financial plans and budget. We also know how much flexibility lenders have, and whether you might be able to access a lower rate than those advertised.
What are my repayments likely to be if I refix?
From there, we can help you work out what your repayments might look like. If you’re feeling a bit of a squeeze from the rising cost of living, this can be really helpful as you set a new budget. If you were making higher repayments than the minimum required, you may not notice much of an increase at all.
What can I do if things are getting tight?
From time to time, many people go through a period where their finances are a bit leaner. If that’s you, you may be wondering whether there’s a way to reduce your home loan payments. We can help you to work through the options – if you’re ahead on your mortgage, perhaps a restructure could reduce your payments, or maybe a period of interest-only payments might be appropriate for your situation. All these decisions have consequences, which we can help you navigate.
What sort of term might be best for me?
As we said, it’s hard to know where interest rates are going to go from here. But we can help you to compare the terms on offer and decide what’s important to you – whether it’s the rate that’s important, or some additional certainty and peace of mind with the structure.
Does the value of my house matter?
It can be a little worrying to see house prices falling. In most circumstances, it doesn’t really matter. But if you’re planning to sell soon, or need to borrow more money, we can help you work out what the current market conditions might mean for your home’s value.
Like to talk?
We’re here to answer all of these questions, and any more that you might have. Give us a call today to book a time for a chat, whether it’s time to refix or you just want some additional peace of mind.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.