Refixing your home loan is a good time to check that your home loan works for you.
Stop stressing about which interest rate to pick, how long to refix for and when this all needs to be done, read on to see how a Mortgage Advisor, especially a Mortgage Advisor from Mortgage Sure can help you when your home loan needs refixing.
What is a refix?
When you completed your home loan documents you took on a fixed rate – which is an interest rate that is set for your home loan for a specific period of time. You might have split your home loan over a variety of different interest rates and terms. When this specific period of time is over you will need to complete the refix process, which is where you choose a new interest rate for a new period of time. This is called the refix process or refixing your home loan.
How can we refix our home loan?
A Mortgage Advisor from Mortgage Sure will contact you roughly 90 days before your fixed-rate expiry to let you know that your fixed interest rate is due to expire – we cannot speak to what other Mortgage Advisors or Banks will do around the expiry of your fixed rate.
At Mortgage Sure we will contact you again when you can start the process to lock in a new fixed rate for you – this varies from bank to bank. From here the process is quite simple because most banks are now offering you new interest rates from your online banking. At Mortgage Sure, we will organise a meeting or phone call at a time that suits you and look at the offering from the bank and which one works best for your scenario.
How can you make sure that your new fixed-rate and home loan works for you?
When your fixed-rate comes up for review it is a great time to check to see if your home loan is working for you. You can do this, by making sure that you have thought about any changes in your circumstances that will impact your goals. It is important to let your Mortgage Advisor know as they might need to reassess any previous advice that they have provided you. Some examples of changes in circumstances might be: a change in income, a change in the family situation, or a change in your financial goals, for example:
Purchasing a new home or investment property
Selling a property
Making a lump sum payment on your home loan or adjusting your home loan repayments.
If you are thinking of doing any of the above, or your circumstances have changed in any way that might impact your home loan goals, then at the time of refixing your loan is a good time to perhaps make changes to your home loan so that you make sure that it works for you.
How does my Mortgage Advisor help me refix my home loan?
A Mortgage Advisor will let you know when your interest rate is up for renewal, this allows you to get ahead and perhaps lock in some rates before the actual date. With interest rates rising this is a good idea, to get ahead and lock in rates sooner rather than later. Your Mortgage Advisor will also be able to give you any advice that relates to your circumstances mentioned above. All banks process their prefixes differently so when it gets down to the paperwork involved that will be different depending on the bank you are with, which makes having a Mortgage Advisor even more valuable as they will be able to instruct you on your bank’s process and help you out along the way.
Does this service come at a cost to me?
As with most Mortgage Advisor services this one is free – here at Mortgage Sure we will help you refix your home loan at no cost to you, most banks will pay the Mortgage Advisor a refix fee which on average is $150.
While we’re home loan experts, our blog posts are for general information purposes only and are not intended as financial advice. If at any stage you need personalised advice, get in touch on 06 8788 4444 or Ben or Mark.
