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Optimise your mortgage structure through a refix or restructure.

In a world of fluctuating interest rates, and economic uncertainty, the questions often arises, “how long should I fix my mortgage rate for?”.

As part of our ongoing loan maintenance service, we’ll review your entire loan structure. If your circumstances have changed, we’ll guide you in determining the best options. Whether that’s breaking and refixing your loan or strategetically restructuring your loans to reduce interest expense and help you pay off your mortgage faster, we’ve got you covered.

If you’re ever unsure about how long to fix, we’re here to help you make informed decisions, ensuring a stress-free approach to managing your loans. Reach out to us today to explore the refixing or restructuring options and discover how we can empower your financial journey.

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Fixed Rate Contract & Break Fees

Understanding Fixed Rate Contracts

When you opt for a fixed-rate home loan, you enter into a contractual agreement with your bank. This agreement ensures that your loan payments and interest rates remain unchanged for a specific period of time. This stability provides you with assurance that your repayments will remain consistent throughout the fixed period.

If interest rates go up during this period, you’re protected from higher interest rates. However, if interest rates go down and you want to take advantage of lower rates, you may need to break your fixed rate contract.

Exploring break fees

Should you decide to break your fixed rate cointract to take advantage of the lower interest rates, make early lump-sum repayment, or increase your regular repayments; you may incur break fees. These fees are associated with terminating your fixed rate contract with the bank.

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What is Refixing?

Refix is when you lock in a new interest rate and term as your existing loans come up for expiry. While your bank may offer you a new rate, it may not be the best option for you as it doesn’t take into consideration all the other important factors.

How we can help

Refixing is part of our ongoing loan maintenance service, this includes:

  • A timely reminder sent to you 60 days before your loans are due to expire 
  • A dedicated Refix meeting where we discuss any changes in your financial circumstances and goals, as well as assess the likely of changes during the upcoming fixed term.
  • A comprehensive review of your entire loan structure to determine whether the benefits of breaking your current arrangement and opting for a new rate outweigh the costs. We consider the entire loan structure, not just the specific loan tranche due for refixing.
  • In-depth discussions about the available interest rates, helping you determine the optimal fixed duration and whether adjusting your repayments is necessary.

It’s important to note that refixing often goes hand in hand with restructuring for maximum financial benefits. Our Twine advisers possess extensive knowledge of economic trends and interest rate dynamics. While we don’t have a crystal ball, we can often provide you with insights to help you make informed decisions and potentially save money in the long run. So before you lock in something, speak to us first.

Should you break or refix? Try our Break & Refix Calculator

Free Mortgage Tools

What is Restructuring?

Loan restructuring involves rearranging your loans to create an optional combination of fixed and floating interest rates. It includes choosing the right duration for the fixed portion of the loan and setting manageable loan repayment amounts – all without moving to a different lender. The ultimate goal is to reduce interest payments and expedite mortgage repayment.

Structuring a mortgage can be complex as there are many options available. Determining the ideal combination of fixed and floating interest rates, terms and the repayment amount can be challenging, especially when considering your unique financial situation.

How we can help

Our Twine advisers go the extra mile to thoroughly evaluate and understand your financial situation and goals in greater detail which surpasses the leve of detail typically offered by banks. This in-depth analysis allows us to tailor your loan structure to perfectly align with your specific needs and objectives.

If your loans are coming up for renewal, we strongly recommend talking to us first before making any commitments. This is a great time to discuss the interest rates on offer, how long to fix, whether to adjust repayments and to discuss your overall finances.

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Reasons to Consider Mortgage Restructuring:

Restructuring your mortgage may be advantageous for various reasons, including:

Changes in Income

If your income has changed or is expected in the near future.

Bonuses or Lump Sums

If you anticipate receicing bonuses or lump sums; allowing you to make substantial loan repayments.

Life Events

When experiencing or anticipating a change in circumstance; such as a new addition to the family or dealing with an illness.

Reduce Childcare Costs

When your childcare costs are anticipated to decrease.

Property Transition

When your property status shifts from a primary home to an investment property, or vice versa. As fully repaying debt on an investment property may not always be the best option.

Home Renovation

When planning home renovations and require additional funds

Debt Consolidation

To consolidate multiple dbets into a single, more manageable loan.

Investment Opportunities

To free up funds for other investment ventures.

Our expertise in loan restructuring can help you make the most informed decisions regarding your mortgage.

Reach out to us today to explore the restructuring possibilities, save money and pay off your mortgage faster.