Gone are the days where home loans were ‘set & forget’ loans to be repaid in 30-years. Now, it pays to review your lending portfolio often and restructure it or refinance so you can reduce years off your loan and save money over the long-term.
There are a number of ways to restructure your loan so you always have the best deal in the market. One way to restructure your loans is with the help of your existing lending bank. The other way is by moving your loans to another lender, which is called ‘refinance’.
Now, we recommend checking with your existing bank first, to see the best deal that you can get. Because working with your existing bank may make your loan restructure easier, without a need of refinance. Especially if your existing bank currently offers better terms than the agreement you previously signed. However, in the case that your lending bank cannot help you save money, it might be smart to consider moving banks, which is called refinance of your home loans, as you could save a considerable amount of money over time.
Read This Also: How to choose the right Interest Rate for your Home Loan?
There are a number of reasons why restructuring your home loan, whether with the same existing bank or refinance to another bank could work in your favour. These reasons could include, but not be limited to the below:
- You require funding for a business purchase transaction, and you want to use the existing equity in your house to fund the purchase.
- You want to fund the purchase of an investment property.
- You want to switch to a bank which gives you the maximum loan amount.
- You want to refinance the more expensive smaller debts into your home loan.
- You have a bulk lump sum you want to repay in your loan – this requires methodical comparative analysis between the break cost and interest cost gains you make.
- Better terms offered by another bank, which might include lower interest rates and cash incentives.
- Significant interest rates movement necessitating you restructure your loans.
Working with your existing bank for a loan structure which is more favourable to you or refinance to another bank if required, can save you thousands of dollars. But this requires a very detailed methodical, and careful analysis and assessment to verify if a restructure is required and how it can help you and how much it can save you.
At Kiwi Mortgages we help you to weigh up your options to make a sound decision on your best loan structure to optimise savings, whether with the existing bank or by refinance to another bank. We are not employed by any bank or banks, so our expert advice is impartial, and serves as another perspective to your best move forward. Over the last eight years, we have helped our customers successfully restructure their loans, whether by refixing their loans or refinance, so they have the best options benefitting them today.
During a period of the low interest rates like we are seeing these days, it’s usually the most favourable time to consider a restructure, whether refix or refinance. Because restructuring your loan now could open the door on much needed equity while also putting you in a better situation to save money over the long-term.
If you would like to speak with one of our trusted mortgage advisors to get this advice, you can call us free here or email us via our website.