Home Loan Refinancing – is it Right for Me?

by May 2, 2016Mortgages

Home_Loan_Refinancing

Scores of people all over New Zealand have found themselves in a situation where their current home loan is not serving their best interests. It is not uncommon at all for home owners to be stuck in a loan where they are paying far too much interest. Should this happen you have two options; continue paying back your mortgage and benefit the Bank or consider refinancing.  While refinancing may not be possible for everyone, it is certainly something which should be looked into. Let’s explore the concept of refinancing and find out if it’s something that you should consider.

Reasons to Refinance

People decide to refinance their home loans when they feel that they are stuck with a mortgage which is less than perfect. However, there can be many different reasons to consider restructuring your mortgage payments. Some of these include:

  • Reduce the length of your loan
  • Lower your monthly payment
  • Change from a fixed rate to a variable rate (or vice versa) or mix and match
  • Access equity for other uses such as boat purchase, debt consolidation etc.

All these examples are reasons why you may want to refinance.  However, they all are handled in vastly different ways. Being aware of the various different strategies for refinancing can make this process far more streamlined and easier to complete.

Am I Eligible to Refinance My Loan?

Eligibility for mortgage refinancing is very much on a case to case basis and depends on two things; your current mortgage structure and equity plus your current financial situation. If you feel you are paying too much for your mortgage and you are dismayed with the lack of available funds in everyday life, then maybe refinancing is for you.

Fees

One potential downside to refinancing your mortgage loan is the added fees which can build up from the process. Refinancing fees are an inevitable part of the process and have to be taken into consideration before you seek out refinancing. These fees and extra costs can potentially be so great that they cancel out the savings which you gain from refinancing in the first place. Luckily, it does not have to be this way. By carefully examining many different options and possibilities it is possible to find a refinancing situation which will not cause a greater burden than it is worth. This is where iLender can provide help. Our qualified Brokers are on hand to sift through the many different types of financing solutions to find one which delivers all the upside that you require.

If you’re considering refinancing, or what to explore your mortgage options, then start by talking to a professional.  Call iLender today for refinancing advice and guidance. Our talented team can help you save more and feel more at ease with your mortgage situation.

About iLender

At iLender we put your best interests first and not the Bank – our advice is unbiased as all Lenders who we do business with pay about the same in commissions.

Although we are Auckland based Mortgage Brokers, we help customers everywhere in New Zealand and overseas with buying property in New Zealand, as we are very much about online and giving advice here and now!

A lot of change Winter 2024

  Lending is seeing a lot of changes currently so here's a breakdown of what to expect. Loan to Values (LVR's) Currently a bank can only lend up to 25% of its money to owner occupiers with less than a 20% deposit. As of July 1st this rises to 20% so expect more...

Options for when your ‘Interest Only’ term expires

In an increasing interest rate environment, coming off a low interest rate PLUS coming to the end of an ‘Interest Only’ term, can be financially traumatic! Be proactive and explore your options. With a Mortgage of $500,000 on an interest rate of 2.99%, if you refix at...

When a Bank can’t help, where can I get a Home Loan at Bank rates?

Good question! We are asked this a lot, so here's our guide to 'close to, but not a Bank, lending'. The first thing we ask is why? What is it about the application that makes the Bank say No? There are multiple reasons and here are the top five. "I'm self employed and...

4 Tiers of Non-Bank Lending: What You Need to Know

It’s currently a struggle for every New Zealander: trying to get the bank to approve their home loan. Lending restrictions are tighter than ever, even for New Zealanders with a perfect credit history.  Luckily, non-bank lenders offer an alternative approach that...

Best mortgage rates, 10% deposit owner occupied and 20% rental purchase, self employed with no financials and help for those with bad credit or arrears.

Hundreds of reviews on TradeMe and Google makes us your ‘Number 1’ choice.

Call 0800 536 337