Refixing: Are you getting a fair deal?
When it comes to refixing your mortgage, chances are your bank will contact you a few months out and offer you the ability to quickly and easily refix your mortgage on the spot using internet bank or their app. But are you certain about what fixed term best suits you, and that you're getting the best deal?
I encourage all of my clients to check in with me first, before locking in a new fixed rate. In the era of online refixing, firstly I ask clients to send me a screenshot of the rates the bank has offered them. This allows me to compare the rates with what their bank has been offering other clients... and you'd be surprised how often there is a difference from one person to the next. If that's the case, I go to the bank to negotiate rates in line with what's being offered to others.
More importantly, though, is having a quick conversation so that I can recommend a fixed term that fits with the clients' needs moving forward. It's important not to lose sight of strategy and purpose when refixing, and simply go for the lowest rate on offer... if you know you're wanting to consider selling and upsizing, as an example, in a year's time, then refixing longer-term doesn't make sense! So - we have a kōrero and take future plans into account, to ensure clients are refxing for the right period of time that suits them.
So, the benefits of refixing with your mortgage adviser:
Confidence and assurance that the rates offered to you are the best rates available.
Advice that's personalised to you to ensure your refix suits where you're at and your plans for the future.
The cost to you? Nothing! Banks compensate mortgage advisers for helping clients with refixing their mortgages, so there's no cost to you - and using an adviser doesn't impact the rates or service the bank offers you, either.
So, next time you have a loan to refix, check in with your mortgage adviser first... after all, you have nothing to lose!
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Note this article is not intended as personalised advice, and should not be acted upon without seeking independent personalised financial advice.
