Type of loan: Refinancing and breaking fixed term
Deposit: Not required for refinance loan
Saving: $5,547 in first year
Jared had a mortgage on a fixed term and was tied in to a further 15 months at 3.8% on a fixed period.
After talking with Money Compare we referred him to a trusted mortgage broker partner whose advisors met with Jared and walked him through the options he could have available.
With interest rates at a record low, Jared had a niggling feeling he was paying more than he needed to… he was right. The mortgage experts Jared worked with did the maths and found that there were a number of options to break his current fixed rate mortgage, pay the penalty fees and still come out more than $5,500 better off in the first year and over $10,000 in savings on his mortgage over the first 2 years.
Jared was with KiwiBank and paying 3.8%, fixed for 18 months, through moving bank and product Jared was able to reduce his interest rate to 2.65% for two years.
By moving lender after talking with Money Compare, Jared was able to secure a $2,800 cash back which covered the penalty fees charged by KiwiBank for breaking their fixed term contract. The lower interest rate at his new lender also meant savings on his monthly repayments.
By refinancing through Money Compare, Jared’s interest rate was reduced significantly from 3.8% APR to 2.65% APR, fixed for two years, meaning a saving of $10,000 over the two year period.
The process of working with the Money Compare recommended broker was simple, easy and free. If you are considering refinancing, would like to calculate the potential savings on breaking your fixed term home loan or you are unsure if you could make some savings then use our easy online form to leave a few details. Just answer a few quick questions to help us understand which mortgage broker best suits your needs and one of our experts will reach out within 24 hours to help you through the entire home purchase or refinance process.