Increasing your repayments by a small amount each week, or getting an extra 0.25% off your interest rate adds up to tens of thousands of dollars saved. Yep, we're not talking small change here.
Getting just a small amount shaved off your interest rate can make a difference to your monthly payments, leaving you more money for the things you want - not to mention getting your home loan paid off quicker.
Your Squirrel mortgage adviser can often renegotiate your mortgage with your current bank, saving you the hassle of switching if you're happy where you are.
Maybe you've started a family, maybe you've retired. Whatever life stage you're at, make sure your mortgage is structured in the best possible way to suit your needs right now.
We're not thinking peanuts here. We're talking tens of thousands of dollars! A review costs you nothing but could save you buckets of money. Seems like a no-brainer.
Sometimes when reviewing your mortgage we might find that the best solution is switching you to different bank. In this case the bank your mortgage is with will charge what's called a "Break Fee". This is because you are breaking a legal contract between you and the bank. The bank incurs a real cost as a result, which is then passed on to you. They’re not just trying to squeeze you for a bit more.
Generally speaking, the longer the remaining time on your fixed term or the bigger the difference between your current interest rate and the new rate (if switching from a higher rate to a lower rate), the higher the break fee.
There are circumstances where it’s worth breaking your fixed term, but it could also end up costing you more in the long run. Every situation is different so get in touch with one of the team to help you work out what’s best for you.
It might be possible to break out of a fixed loan before the term is up, but you’re likely to be charged a break fee for doing so. This is because the bank is incurring a loss by you breaking the term early. This loss is passed on to you in the form of a break fee. There are some instances where it’s worth breaking your fixed term, but it could also end up costing you more in the long run. Every situation is different so get in touch with one of the team to help you work out what’s best for you.
If you sell your house to buy a new one while still under a fixed term, you may be able to transfer the existing loan and rate to the new property. If you’re repaying your loan once you’ve sold, you may have to pay break fees. Before you sign anything, get in touch with one of our team to chat through your options.
The only way to be certain you won’t have to pay break fees is to make sure you don’t break your fixed term early. So before you fix for any period of time, ask yourself if you’re planning on selling in that timeframe, and also to what extent you will feel regret if interest rates were to drop and you were stuck on a higher rate? There are ways to set up your mortgage to take advantage of the certainty of fixed terms but also retaining the flexibility of floating rates. Talk to one of our advisers to help get the perfect mortgage structure for your situation.
Learn more about how to structure your mortgage and the benefits it can bring from our blog.
Would you be better fixing for 1 year at 5.60% or fixing for 2 years at 5.80%? That depends on your view on interest rates.
Here at Squirrel, we don't have a one-size-fits-all solution for your home loan. Every person's requirements, financial situation and even frame of mind when it comes to their loan is unique - and their loan should be too.
Whilst you don’t want to be paying more than you can afford, increasing your mortgage payments by as little as $10 per week can save you as much as $25k over the life of your loan.
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I dealt with Ash Robinson in Auckland. He was wonderful from the start and always provided good advice and efficient communication was second to none. Loved the service. Got a super deal too! Thanks Squirrel.
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Emma was clear, knowledgeable, patient and remarkably laid back considering the short time frame we had to work with in the end. She has most importantly saved our household a lot of money by finding us a great mortgage deal. Thank you!
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Fab. As always.
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