Refixing or Restructuring

Q: When should I consider refixing or restructuring my mortgage?

Consider refixing when your current fixed-rate period is ending, or if you want to lock in a new rate due to changing market conditions. Restructuring is beneficial if you need to adjust your repayments, manage cash flow better, or if your financial situation has changed. A financial advisor can help you decide the best timing for these adjustments.

Q: What are the potential benefits of refixing or restructuring my mortgage?

Benefits include securing a lower interest rate, reducing monthly payments, paying off your loan faster, or gaining flexibility with repayment options. These changes can lead to significant savings and improved financial management. A financial advisor can provide a tailored analysis to highlight the advantages specific to your situation.

The team at RSFA will look pragmatically at what is best for you, and not the bank. It may be that we recommend remaining with your own bank – advice is key.

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We welcome new and existing clients to contact our friendly team. We typically do not charge for re-fixing advice and will disclose any charges that may exist early in our engagement for your consent. Please note banks do send online offers to clients and we will request a copy of the offer to commence the advice process.

In summary, we can assist with:

Obtain basic information from you
Work with you to establish your needs and areas of advice required
Seek the best pricing from your existing bank as well as advise on other market pricing – we will be fully communicative within this process
Make a plan consultatively where we ultimately would want to achieve a value-add result from our perspective, which may include a better rate being negotiated with your bank or a refinance to another bank to acquire a financial outcome in your favour. Whichever the case, we will look to add value alongside this with sound and pragmatism in the financial advice we provide
We will look to manage your re-fixes moving forward provided you agree, and for that, we will work hard and diligently to gain your ongoing business

Note, most banks allow you to fix up to 60 days prior to your fixed rate renewal. We therefore highly recommend being in touch around 2 ½ to 3 months prior to the renewal of your fixed term for these reasons:

In an increasing interest rate environment, it may save you money to fix as soon as you are able so as to beat a rate rise
By discussing whether it is best to re-fix or look at refinancing to another provider as early as 3 months from the expiry of your fixed loan term we can spend time working with you and setting up an approval to refinance, should that be in your best interests
Banks can take a varied amount of time per loan application. It is not advisable to leave these discussions to the last minute; it may mean you feel forced into taking your existing bank’s offer without the considered opportunity of a better deal. Being organised means more time to negotiate with the incumbent bank and making an informed decision about the next finance move

Finance cost speaking, this is a pivotal moment and dealing with your current bank only provides an option with your current bank! And the deal kicker is on any given week we are aware of and monitor the best rates and packages are in the market as we deal with all the banks; how could your existing bank possibly profess the same?

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With over 20 years of industry experience, Rod and his team provide expert guidance and top-notch service to help you achieve your financial goals. Reach out to our team today.

+64 9 950 8800

rod@rsfa.co.nz

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RSFA Financial Advisers leverage Planolitix to provide clients with comprehensive financial planning and advanced data analysis, ensuring tailored solutions for optimal financial outcomes.

By utilising this sophisticated tool, RSFA Financial Advisers enhance decision-making processes and maximise investment strategies for their clients.

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Useful Calculators for Refixing or Restructuring

Our website offers a variety of easy-to-use financial calculators designed to help you make informed decisions.

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Repayment Calculator

Estimate monthly loan repayments based on the loan amount, interest rate, & term.

Loan Comparison Calculator

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Budget Planner Calculator

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Frequently Asked Questions

What does refixing or restructuring a mortgage involve?

Refixing involves renewing your mortgage at a new fixed interest rate, while restructuring may involve changing the loan term, repayment schedule, or splitting the loan into fixed and variable portions. Both options aim to better align your mortgage with your financial goals.

When should I consider refixing or restructuring my mortgage?

What are the potential benefits of refixing or restructuring my mortgage?