Refix or restructure

Refix

When any fixed rate mortgage is coming to the end of the fixed rate term, your bank will offer you a new rate. When you refix your mortgage, you can, and should, take advantage of the situation to reduce the rate the bank offers. Just like when you first got a mortgage, securing the best rate requires a lot of negotiation with your lender. Most often, a professional who has intimate knowledge of the current lending market can negotiate a better fixed rate on your behalf.

Restructure

While your mortgage rate is important, it’s not the only thing to consider. Mortgage restructuring is the process of rearranging your home loan into a winning combination of fixed and floating interest rates, setting the right term or terms for fixed portions of the loan, and ensuring appropriate loan repayment amounts are set. The usual aim of restructuring is to save you thousands in interest repayments and repay your mortgage many years quicker than any standard term given to you by the bank.

As there are multiple ways to structure a mortgage, deciding what combination of mortgage options is best for you can be quite confusing. This is where we can assist. Because our mortgage advisers (commonly called mortgage brokers) will take the time to understand your situation and goals better than your bank, and because our advisers work with mortgages all day, they'll be able to ensure your loan structure is specifically structured to meet your needs. This includes considering circumstances such as if:

  • You’re thinking of selling the property
  • Your income is changing, or may change
  • You expect or have already had a change in circumstances such as an illness or new addition to the family. This will affect your regular surplus
  • Your childcare costs reduce soon
  • The property is a home or investment property, or will soon transition from one to the other. This is because repaying all debt on an investment property isn't always the best option
  • You're planning renovations
  • You should consolidate debts
  • You want to free up funds to invest elsewhere
  • You expect any bonuses or lump sums

If we research your existing situation, and what’s on offer from your existing lender, and we think changing lenders is the better option, we’ll even do the hard yards on your behalf to get you the best deal. In this case, the time it would’ve taken you to research every bank and lender could be condensed into a brief email or call with our team.

Assistance

In most cases, assistance for this is free to you, as we’ll be paid by the lender. To be transparent, we'll also inform you about it, and so you know our Authorised Financial Advisers are truly putting your interests first, our advisers are all paid a salary instead of commission. They also have no incentive to promote one lender over another.

What next?

At Milestone Direct, we make the process of refixing and restructuring your lending as simple as possible for you. With thousands of dollars at stake, what have you got to lose?

For a free, no-obligation chat with an Authorised Financial Adviser - in this case, often called a mortgage broker - about refinancing your existing lending, call 0508 MILESTONE (0508 645 378) or leave your details below.