20 Johnsonville Road,
NZ 6037
Efficient Mortgage? YIP! 
14 Jul 2022

Efficient Mortgage? YIP! 

William YIP
A lot of the people we are helping are coming off lower fixed rates and dreading the jump in repayments. The Reserve Bank is expected to continue to increase the official cash rate and pressure on the cost of living continues. Here are a few ideas that may help manage your new repayments. 
  1. Refinance – A good mortgage broker can review your mortgage situation and find solutions across multiple banks / lending institutions. Just because you bank with a particular bank, it is an easy process to obtain a mortgage from other institutions.  
  2. Debt management – Rather than digging into credit cards, have a look at offset / flexi facilities with your mortgage provider. If something urgent pops up, it is good to know that you can access some of the equity in your property at a much more affordable rate. 
  3. Negotiate the Rate – The advertised mortgage rate is never the lowest possible rate, most lenders have discount margins that your broker / mortgage manager will be able to help with. You will find that a small discount on interest rates will compound your savings exponentially over time. Well worth doing. 
  4. Make extra repayment – The first half is the toughest part of paying off a mortgage, making extra repayments reduces the compounding interest and you can always access the repaid equity through your flexi/offset facility. 
  5. Streamline expenses – There are always ways of saving on your living costs, you can buy groceries direct, shopping around for same products at discounted rates, cheaper power/utilities plans, looking at fuel savings and so much more. Even an extra $100 a week put towards your repayments, would shave years off an average mortgage in this area. 
With recent changes and property prices flattening out, we’ve seen a welcomed increase in enquiry and interest in our properties. If you are considering buying or selling, now may be a good time to have a chat about your plans and position you in the best possible outcome.  
If you would like a Mortgage Broker to be in touch with you, get in touch as well, happy to help!  
Have a great week!