When is Refinancing Your Mortgage a Good Option?
Channel: The Mortgage Lab
Date: 2022-06-28

Refinancing to a lower interest rate sounds like a good idea. But do the numbers stack up? Mortgage Lab CEO Rupert Gough takes you through what to consider before making the move.

"Today we are talking to all those people who currently have mortgages and are looking for a better mortgage rate from another bank.  We’re going to look at what you need to know about interest rates and when it’s good to refinance and when it’s not a good strategy.

So, you’ve got a fixed-term interest rate maturing soon and the bank or your broker has sent you some interest rates. Maybe your current bank is offering 0.1% higher than another bank in the market; should you refinance your mortgage to get the better rate?

Before we can answer that question, we need to consider how much of a difference the interest rate difference will make.  In theory, it should always make sense to move to a cheaper bank however, even with very large dollar numbers, the first calculation we need to do is find out if it is worth the bother."

If you are unsure where to start or have any questions, don't hesitate to contact the team at mortgagelab.co.nz/contact-us, we're here to help.

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