Why you shouldn’t refix your mortgage online without doing your homework first
We get it…. Life is busy, and when your mortgage fixed term is coming to an end, it’s tempting to jump into your banking app, hit “re-fix,” and get it sorted in seconds.
But here’s the thing: just because it’s quick and easy doesn’t mean it’s the right move.
When you refix your mortgage through your bank’s app or online portal, you're entering into a binding agreement - often for the next 1 to 5 years. That means if your circumstances change and you need to make adjustments to your loan later on, you could face hefty break fees.
And in today's ever-changing interest rate environment, being locked into the wrong structure could cost you more than you think.
Your life might have changed - so should your loan
A lot can change in just a few years: a new job, a growing family, starting a business, or simply wanting more financial freedom. If you’ve been on a fixed loan for a while, it’s worth checking whether your current setup still suits your lifestyle and goals.
There might be better loan terms or more suitable structures available that align with where you're at now, but it’s likely that you won’t find those options through a one-click re-fix online.
Before you lock in another term, it pays to talk to a mortgage adviser who can explore all of the options across multiple lenders - not just your current bank. At Loan Market Queenstown, we look at your full financial picture and can help you look at options like…
Splitting up your loan to manage interest rate changes more flexibly
Using an offset mortgage to reduce the interest you pay
Refinancing to better rates or structures that reduce your repayments
Consolidating debts into your home loan to save on high-interest payments
These kinds of strategies can make a huge difference, and they’re not something you’ll typically see when re-fixing online.
We recommend getting in touch with us at least 60 days before your fixed rate ends. That gives us time to explore all your options and ensure you don’t miss out on the most competitive rates or get caught out by fees or deadlines.
Your mortgage is likely your biggest financial commitment, so don’t lock in another fixed rate without first understanding what else might be out there. Before you re-fix online, talk to the team at Loan Market Queenstown. We’ll make sure you’re getting the best deal for your situation, not just the quickest fix.
Book your free appointment with us today.