As Kiwis struggle with the rising cost of living, higher interest rates and recent weather events that caused significant damage to homes in certain regions, many more homeowners and first home buyers are turning to mortgage advisers for financial advice. With fixed rate mortgages at a record high, and close to half of those due to expire in 2023, there’s never been a better time to talk to a mortgage adviser about refixing or refinancing options to fit the budget.

More Pain Ahead for Homeowners

Data from the Reserve Bank of New Zealand shows that 90 per cent of all mortgage lending in New Zealand is on fixed rates, with a large number of fixed rate home loans due to expire in the second half of 2023.

Some economists believe the country is likely to fall into a recession later this year, as the combined effects of rising interest rates and a quieter job market lead to households having to tighten their belts and reduce spending significantly. At the same time, the Official Cash Rate is predicted to rise even further, pushing mortgage rates to their highest levels since the Global Financial Crisis in 2008.

Homeowners who fixed post-Covid may experience some form of mortgage stress when moving from a circa 2 per cent fixed term interest rate to a 6 - 7 per cent interest rate, with the jump in mortgage repayments pushing some homeowners over-the-edge financially.

For those facing hardship or concern around meeting higher mortgage repayments, there are options available during these tougher financial times.

Refixing, refinancing and restructuring

With fixed rate renewal dates fast approaching, homeowners looking to refix or refinance in 2023 are urged to contact their mortgage adviser well ahead of their fixed rate expiry date. Starting discussions early gives homeowners more time to explore their options and compare financial solutions.

It’s critical homeowners get qualified financial advice before making any decisions that could impact their financial future. Mortgage advisers can assist with a review of the current mortgage structure and provide advice around adjustments that can be made to reduce repayments. Contact a mortgage adviser to discuss:

• Mortgage restructuring
• Fixed vs. variable interest rates
• Extending a loan term
• Interest only terms
• Refinancing
• Mortgage holidays

Professional, qualified advice

While interest rates may appear similar between many of the lenders, there are other factors to consider, including cashback offers, flexible terms, and loan features that save money and can make a considerable difference to the cost of a home loan over time.

Talk to a Mortgage Express branded mortgage adviser about a viable financial solution that fits your specific circumstances, lifestyle, and budget. Don’t wait, get financial advice today.