When rates are low… it’s not the rate you pay, it’s the rate you pay it off

Mortgage rates are currently as low as they have ever been with some banks advertising rates under 4% for up to 3 years fixed.

You certainly want to make sure you have a competitive rate on your loan, but we encourage our clients to see this low-rate environment as an opportunity to shed years of their mortgage by keeping your repayments up.

How does it work?

The only thing you need to do, when re-fixing for a lower rate, is keep your repayments the same as what you have been paying on your previous rate. Here’s an example of how it could work:

  • You have a 25-year mortgage of $400,000 locked in at 4.5%
  • Your current repayments are $1,026 per fortnight
  • When your fixed rate comes off, you re-fix again for 4%, the new repayment should be $974 per fortnight
  • By keeping your repayments at $1,026 per fortnight, you would save $21,724 of interest and shave 2 years off your loan term.  Yes, that’s 2 years earlier that you would be debt free!

When you have a loan, it’s important to balance your repayments with the lifestyle you want to lead. However, if you’re currently on a higher interest rate, speak to us about how much time and overall interest you could save by refixing at a lower rate, and keeping your repayments the same.  Remember it’s not the rate you are paying, but the rate you are paying your loan off which makes all the difference.

Contact us on 0800 809 009 or mortgages@apexgroup.co.nz.


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