When you take out a fixed rate mortgage, you commit to that interest rate for a period of time right? Well yes and no.Most people know you can break this fixed interest rate term, but may have to pay a penalty fee.What most people don’t know is that under the Credit Contracts and Consumer Finance Regulations 2004 that govern the terms in your mortgage contract, lenders are not allowed to profit from you breaking your fixed interest rate early. They can only recover losses they incur, and there is a specified ‘Safe Harbour’ formula in the regulations for calculating this loss.
Quite often the bank actually makes a profit from you breaking your fixed rate early, and so can you. If the interest rate that the bank offers for the term that most closely matches the remaining term on your fixed rate is higher than your current fixed rate, the lender makes a profit.
We can quickly calculate your interest savings and best interest rates on home loans.
When you come to us for a refinance, we use a 3 step process; refinance→restructure→mortgage match. We have put together an example of the savings to be made at each step.
*Based on a 30 year loan term.
Thanks to our refinance - restructure - Mortgage Match process, our client now has a total savings of $160,832 using our Mortgage Match method! So you could save $57,240 with a traditional refinance. Or $160,832 and slash 7 years and 1 month off your mortgage using our system. Bit of a no-brainer isn’t it.
We don't charge for our services unless it’s something complex, and if that's the case we’ll tell you upfront.
We deal with all major banks, and we know who's competing for new customers at any given time and who will give the best deal. We do the negotiation for you.
We advise on things such as loan structure, budgeting and our view on lowest interest rates. Bank employees technically aren't allowed to give their view on these and if they do it’s in favour of their bank.
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