The cost of living crisis isn’t making those mortgage payments any easier. But if you’re worried about your mortgage and how it’s going to pan out, then you’re in the right place for it! With the interest rates around the country seeing changes and the market too showing some movement, the presence of a mortgage broker can truly change how your mortgage plays out in the months ahead.
But fear not! Auckland’s best mortgage advisers are here to put your mind at ease. Re-fixing your mortgage may be the greatest option that you have not yet explored! With MortgageDesign at your back in the Auckland home market, you can be rest assured that your mortgage will not be your top concern.
Buying a House in New Zealand
According to a 2018 census, the home ownership rate was at 64.5% in New Zealand, and renting households were around 35.5%. Once all figures are taken into account, around 33.1% of households have a mortgage.
With the cost of living crisis not yet easing completely, many are concerned about the interest rates which could be set to expire soon. Many households had initially set the interest rates low during the pandemic, however, this year could see them re-fix their mortgage with the banks considering the timelines.
Re-fixing your Mortgage
Re-fixing your loan means that you stay with the same lender and make an agreement not to change the loan for a period of time. In return, the bank will fix the interest rate and repayments.
This adds a level of certainty to your mortgage as your payments are frozen over a certain period and can help you plan your finances accordingly. With experienced mortgage advisers at your back, this process can be greatly streamlined to re-fix your mortgage in the time to come!
Re-fixing loans is a great mechanism to provide for changing circumstances of mortgagees. Fixing the interest rates allows for temporary ease in case you are operating from a slightly distressed financial situation and can also allow you to take advantage of fluctuating interest rates in the market.
In case interest rates drop in the market, and you are nearing the end of your fixed term mortgage, mortgage brokers in Auckland, like Mortgage Design, can help you take advantage of these drops and make the most of your mortgage.
Mortgage Brokers to Re-fix Finance Loans
With nearly 1.26 million outstanding loans in the market as off July 2023, the interest rates across the country have seen an increase since 2021.
The one year standard rate around June 2021, was reportedly 3.17%. In May 2023, the reported one year fixed rate was 7.13%. This would mean that if you’ve refixed your loan for a fixed term expiring sometime in the next quarter, your mortgage payments could be set to see a steep increase.
But with Auckland’s best mortgage brokers at your side, re-fixing your mortgage will not be something you need to worry about anymore.
Call us for a free consultation today!