How to pay less on your mortgage
Here's some examples of how I have helped people pay less for their mortgage:
Case Study 1
Clients had short term debt that was expensive and they were not making any headway to pay if off.
They had a small floating loan that would be repaid in 6 years. They had two larger loans with 19 years and 27 years to go, both fixed on high interest rates.
They could stay with their same bank, get a top up to pay off the short term debts and cover break costs, re-fix at a cheaper interest rate, and save $174 per month.
OR they could refinance to another bank, with a cash offer from the new bank covering break costs and lawyer fees and leaving $ in their pocket. Then structure their new loan (including enough to repay short term debts) over 20 years on a lower interest rate, saving them $85 per month – this
means they’d pay their whole loan off 7 years faster! Or structure their new loan over 25 years with a low interest rate saving them $376 per month!
Case Study 2
A rental investor with 16 rental properties in 3 different entities had fixed loans totalling around $2.3 million at high interest rates. A year after he fixed, interest rates decreased significantly. He was facing break fees totalling approximately $42,000. I went to his existing bank, and also went to the market. Interest rates offered were similar between two banks, so the investor could add the break fee to his loan and still save over $31,000. But the second bank offered $15,000 in cash to refinance! The client refinanced, fixed at cheap rates for 1 year (which are looking like he can go on to even cheaper rates when these expire) and has been saving over $2000 in interest every month!
Case Study 3
A home owner with a minimal income from the Sickness benefit was struggling to meet loan repayments. By breaking out of his high fixed rate, adding the break cost to his loan, he will pay $600 less interest than if he continued for the remaining fixed period, and his repayments drop by $36 per
fortnight. It doesn’t sound like much, but small tweaks like this can mean food on the table and make a massive difference for someone who is trying to get back into the workforce.
If you think you are paying too much interest on your home loan, please call me. I deal with NZ’s widest range of Lenders. My service is FREE and could save you thousands!