3 things to consider before you refix

Date: 16 Jun 2023

Tags: First Home Buyers, Managing your home loan

Author: Lincoln Davie

Time to lock in a new rate?

Refixing your home loan in New Zealand is a crucial decision that requires careful consideration. Rather than accepting your first lender's offer, it's essential to explore your options and make an informed choice.

Here are 3 important questions to ask when locking in a new loan rate.

1 - What is the forecast for fixed interest rates?

Gaining insights into the market's outlook for interest rates is crucial. Our team take the time to research and understand the predictions made by financial experts and economists. We share this knowledge will you so you can make more informed choices.

Consider your risk tolerance and financial security when deciding on the duration of your fixed rate. While longer-term fixed rates provide stability, they may limit your ability to benefit if rates decrease. Find the balance that suits your circumstances and objectives.

2 - When are your other home loans due for refixing?

If you have them, take into account the timing of other home loan refixing dates. By aligning the refixing dates of multiple accounts, we can streamline the process and potentially negotiate better terms on your behalf, optimising your financial position across various loans or mortgage accounts.

3 - What does your short-term future look like?

Together we’ll take the time to talk through your financial situation for the next 1-2 years. We’ll play-out and consider your best and worst-case scenarios and how they could impact your mortgage. Evaluating potential changes in income, expenses, and any life events that may influence your ability to manage your mortgage repayments is an important step with locking in new rates. Assessing your short-term outlook allows you to select a refixing option that aligns with your financial goals and provides stability during uncertain times.

Quantum's free Fixed-Rate Review service

Refixing your home loan provides an opportunity to reassess your mortgage and potentially save thousands of dollars over its term. Even a slight increase in interest rates can have a significant impact on your repayments. Therefore, it's crucial to explore all available options before committing to a new contract.

When it comes to refixing in New Zealand, don't settle for the first offer that comes your way.

Instead, ask important questions about interest rate forecasts, consider the timing of other accounts due for refixing, and evaluate your short-term financial outlook.
Refixing gives you an opportunity to optimize your mortgage and save money over time.

Take advantage of Quantum's free Fixed-Rate Review service, to make a well-informed decision that aligns with your financial goals and provides stability for the future.

3 things to consider before you refix
resimac logo
Avanti finance logo
First Mortgage Trust logo
AIA Group Logo
Finance NOW

Finance NOW

Oxford finance logo