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The benefits of mortgage restructuring

When it comes to mortgages, most people want to get rid of them as quickly as possible. However, navigating the complex world of home loans and finding the right strategies can be challenging. But with a little help and the right advice, you could restructure your home loan with better interest rates or a shorter loan term which could result in huge savings over the life of your mortgage.

Aseem Agarwal, Head of Mortgages at Global Finance in Auckland explains, “Through loan restructuring, homeowners can make additional payments towards their principal or opt for shorter loan tenures. These strategies accelerate the equity-building process, enabling borrowers to build a valuable asset that can support their long-term financial goals.”

So, let’s look at the benefits of loan restructuring and how doing it well can mean financial freedom sooner.

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The benefits of loan restructuring

Restructuring your home loan is all about finding ways to pay off your mortgage more quickly than the standard 30-year term offered by the banks. It is a proactive approach that puts you in charge of your financial well-being.

By keeping on top of your mortgage, rather than leaving it in ‘set-and-forget’ mode, you can work to find the correct combination of fixed and floating interest rates and select the right terms for the fixed portion of the loan thereby saving loads of money in interest repayments.

Empowering homeowners

Loan restructuring can give you a sense of control. By adjusting the terms and conditions of the loan, you can have greater financial flexibility, enabling you to better manage times those financially tricky times and get to where you want to go faster.

As Aseem says, “Loan restructuring empowers homeowners by tailoring their mortgage to suit their financial situation. It allows borrowers to regain control over their repayments and adapt to changing circumstances, such as interest rate changes, job loss or unexpected expenses.”

Opportunity for lower interest rates

You can take advantage of prevailing market conditions by refinancing your mortgage or negotiating a lower rate with your lender. This can be especially beneficial for homeowners who took out their mortgages when interest rates were higher.

Leverage the power of fixed and floating rates

This strategic approach allows you to take advantage of favourable interest rates. Fixed rates provide security by locking in an interest rate for a specific period, shielding you from potential rate hikes. Whereas floating rates offer flexibility and the chance to take advantage of potential interest rate drops.

By finding the right balance between fixed and floating rates, Global Finance can help you optimise your mortgage structure. “By carefully analysing your financial situation and market conditions, we determine the ideal split between fixed and floating rates. This approach offers stability and flexibility, ensuring you can effectively manage your mortgage repayments while working towards early mortgage repayment,” explains Aseem.

Reduced monthly payments

If you need to free up funds for other essential expenses, loan restructuring can mean reduced monthly mortgage payments. This can be done by extending the loan term, adjusting the interest rate, or modifying the repayment schedule. As Aseem points out, “Restructuring can alleviate financial stress and improve borrowers’ overall cash flow.”

Improved debt management

Use your mortgage for debt consolidation. You can restructure your mortgage to include credit card debt and personal loans. By incorporating these debts into a single payment, you can simplify your financial management, as well as potentially benefit from lower interest rates associated with mortgages.

Leveraging equity

Another significant advantage of loan restructuring is the ability to leverage equity. Home equity is the difference between how much your home is worth in today’s market and how much you owe on your mortgage. As you make mortgage payments, your mortgage principal reduces, and you build home equity. “By restructuring their loan, homeowners can unlock the potential of their equity”. You can tap into accumulated equity to access additional funds for things such as home improvements, debt consolidation, or investing in other ventures.

If you bought your home with less than a 20% deposit, for example, and you’ve built up equity in your home, you may be able to use that equity to negotiate a new mortgage. With a smaller deposit, you may well have been paying above-market rates for your home loan. Now, your home may be worth more than when you bought it. Therefore, your equity in your home will also have increased, making you eligible for more favourable mortgage terms.

Loan restructuring offers numerous benefits for homeowners

It is a valuable tool that can help homeowners be adaptable. Restructuring your home loan can help you regain control over your mortgage obligations, improve cash flow management and leverage equity.

As mortgage advisors at Global Finance, we understand the importance of personalised solutions. For restructuring to work for you, a number of factors need to be carefully considered. Here are the main ones we take into account under our Mortgage Genius Plan:

Assessment of income, expenses, and potential savings: This analysis helps identify areas where savings can be maximised and potentially allocated towards mortgage repayments.
Consideration of current and projected interest rates: Interest rates are a critical aspect of any mortgage. Using our expertise and leveraging our relationships with lenders we hunt out the most competitive rates available.
Splitting of the loan into portions: We would advise on the optimal allocation of your mortgage between fixed and floating interest rates.
Evaluation of anticipated financial commitments: Understanding your near future financial commitments, such as upcoming expenses, potential income changes, or other financial obligations that may impact your ability to meet your mortgage repayments comfortably is crucial.

A customised restructuring plan

“With our Mortgage Genius Plan, we aim to empower homeowners with the tools and expertise needed to pay off their mortgages faster. By combining our knowledge, experience, and personalised approach, we are committed to helping you achieve financial freedom.” – Aseem Agarwal, Head of Mortgages at Global Finance.

If you are a homeowner seeking to optimise your mortgage, then reach out to our team of experts. Together, we can explore your options and help you take charge of your financial journey.

The information and articles presented in this blog are meant for knowledge and information sharing purposes only. They do not constitute personalized financial advice. We strongly advise you to seek tailored financial advice based on your specific needs, goals, and circumstances before making any financial decisions.

Using overseas income for an NZ mortgage

Over the past decade, New Zealand’s housing market has been in a state of flux – to say the least! Property prices have shot up all over the country, and are continuing to rise – and are some of the most expensive in the world.

Recently, we’ve seen broad changes around who can buy and sell property in New Zealand. Generally, you’ll need to be a citizen or a permanent resident to buy a property, although there are some exceptions. Lending rules have changed as well, with most banks and lenders requiring higher deposits and anti-money laundering rules adding more hoops to jump through. To put it mildly, it’s a complex market and even trickier if you’re living overseas, or earning money from international sources. It will be a great idea, if you find a good mortgage broker in Auckland while applying for home loan by using your overseas income. A good mortgage adviser can help you to explain current lending criteria & help to prepare all documentation.

So, can you use international income to qualify for a loan in NZ? The answer isn’t straightforward.

Can you buy a house with money from overseas?

In this digital age, you can be living in one country and earning some or all of your income from another. While that has implications on your tax payments, it’s still fairly simple to use that income to qualify for a home loan in New Zealand. The banks will be interested in three things: how much you earn vs how much owe and spend, how much cash you have saved, and how secure your income is. If you’re a contractor earning from international clients, banks may see your income as less secure than if you’re employed by an international firm, for example. There may be some added complexity in proving your income in a form that the bank is happy with, but any excellent mortgage broker will be able to help guide you through the process.

What if I’m living overseas?

If you’re a citizen of NZ, Australia, or Singapore, you can legally buy here while you’re still living and working overseas, but getting a loan may be much more difficult. Many banks and non-bank lenders have tightened their rules around lending to non-residents with non-NZ income. You’ll generally need a larger deposit – at least 30%, so your borrowing power is drastically reduced. You’ll also need to be earning from a salary or wage, not from self-employment.
Even with those boxes ticked, some banks will still say no. Westpac, for example, will no longer lend to non-resident borrowers with overseas income.

How to buy a house with international income?

If you’re living in NZ and earning money from overseas, the simplest way to get into a property is to talk to a great mortgage broker. Lending criteria of the major bank and non-bank lenders change almost daily, so approaching each directly could mean a lot of paperwork, and a lot of disappointment! A mortgage broker will understand which banks will still be happy to lend to you, and which won’t. They’ll also advise you on how to package up your financial information to present the best view to the bank and help you sidestep potential issues that could get in the way of the big ‘yes’ stamp.

Consult an expert

Property values rising, money-laundering rules, residency in another country, proving your overseas income is secure – these are some of the complexities you’ll face when you want to buy a home in New Zealand with overseas funds. You can still do it if you tick all the right boxes and satisfy your lender that you’re worth the risk.
But why put yourself through the stress, when a mortgage broker can smooth the way for you?

Talk to Global Finance today about how to turn your overseas funds into a home.

How to find a good mortgage broker in Hamilton, Waikato

Are you planning to buy your first home? Don’t know from where your need to start. In this circumstances, you may find a good & reliable mortgage broker or agency. A mortgage broker is someone who is incredibly important in this, they are able to secure good deals in an investment everybody is after, properties. They listen to what the individual requires and find a deal suited to their needs.

As we know that, global economy is very unpredictable, so it is vital to find people in the financial industry that can assist and guarantee a good deal to the best of their abilities.

Buying a house can be a daunting task, especially if it is your first. Using these 5 principles when finding a broker would go along way in finding one that is the right fit for you.

Ask around for recommendations, we are fortunate in this age to have access to a large amount of people through social media, ask around for recommendations . It is an efficient way to find a reliable & honest loan broker. Ask your friends & family or ask your local community people regarding loan broker. If you are connected with different social community or forum, ask them as well. Listen their experience & process while applying home loan or business loan. If you looking top mortgage adviser near Hamilton, you may check Auckland based broker as well. According to recent research, i found, there are 100+ mortgage broker in Hamilton. Beside, there are a few agency provide offshore consultancy for Hamilton clients as well.

Personal or financial data is very confidential. Be careful of handing out your personal details, you may make way for unsolicited mails.

We are living in a finest & modern age. You can easily do research regarding mortgage adviser or any business online. Research the brokers by searching the internet for reviews, they may even have a social media presence for you to monitor. They all have portfolios, so this is something you can and should ask for. The term don’t put all your eggs in one basket has merit.

According to expert, it is handy to get 3 or 4 mortgage rates quote from different advisers agency. It might gives you clear indication regarding your loan rates or marketing standard. Set up interviews with at least 3 brokers. Schedule them as close together as possible so the information from all 3 is still fresh in your mind while making your decision.

Make a list of questions to take along with you. Look for a broker who is able to ask more questions than you would think of. The more information they have on you, the easier it will be for them to find a deal best suited to your needs.

Deciding on a broker that you can trust is vital in a successful purchase, you must feel at ease with the decision and be confident that your broker is the best one for you.

Now that you have found your trusted broker, here is how to deal with them.

Every broker needs a license to operate, ensure this is the first thing you see to validate that he is authentic.

Ask your broker about the application process, this will then inform you if there is anything left that you need to do before the process officially starts. Ask them to explain the terms that you may not understand fully.

Your broker needs to know your budget, which will include all the relevant fees, ask them to explain the rates, fees and points applicable, as with every working person, they must earn an income.

You need to know what the fees for your broker are going to be. Whatever your credit score is, it is important to know what this means for you in your property investment. Be sure to get this information from your broker. Ask them information about the loan, and for them to explain it fully.

Ask your broker to give you the information to compare on your own while he does the same.. This gives more opportunity for you to ensure the best deal is yours. Be sure to read the fine print and all documentation carefully. Buying your home does not need to be as scary as it seems, following these steps to finding yourself a quality mortgage broker will put you well on the way to a great investment.

Customers Drive Business Expansion – if you listen to them

Many businesses talk about customer centricity, but few genuinely listen and act on their customer feedback. There are many ways in which you can gather feedback, with the most common being a survey. But surveys are often part of the problem for two reasons that can lead to a downward spiral in customer engagement.

When customers take the time to provide the business with feedback, there is seldom an acknowledgement let alone any meaningful response back so customers don’t know if they have been heard or valued for their efforts to make the business better.
Often the consequence of the first reason, is poorer and poorer response rates over time. It follows that if the customer makes an effort to give the business feedback and there is no response to the feedback and no action, then over time the customer will stop responding and their engagement with the business is also likely to decrease.

It should seem incredible to any business that an average survey response rate of 33% is acceptable (https://surveyanyplace.com/average-survey-response-rate/ ) with more typical response rates being nearer 20%. Survey Cynicism is contagious, and it is possible that you have had a case of it yourself. The symptoms are displayed as increasing negativity towards the business survey supported by comments such as “they don’t listen, respond or act so why should I bother when this business over here seems more interested in what I have to contribute”.

Any truly customer centric business will gather feedback not for the sake of the data but to help strategically shape the business expansion in line with the customers it has and the other ones like them it wants to attract. After all, what sustainable business can survive without happy customers where customers have choice?

Global Financial Services is one of leading mortgage broker agency in Auckland, New Zealand. We won over 40+ award for financial & customer services. Global Finance is one business that seeks customer feedback through it’s annual Customer Satisfaction Survey and not because it wants any congratulations for a job well done. The repeat business and existing client referrals are evidence enough. But because the survey provides the opportunity to draw insights from the feedback about what it can do better and what it isn’t doing yet that would be desired by the people the business serves.

In November Global Finance opened a new branch in Henderson. This decision, the huge amount of planning, resourcing and execution can all be traced back to feedback from the annual Customer Satisfaction Survey when customers told the business they wanted to see Global a lot more local. Next is Manukau. So, our advice is to listen to your customers; they will expand your business.

And if you are near one of our branches, come in and see us. We are here to listen. Global Finance – Your best interest.

A little about us :

Global Finance Limited is one of the leading mortgage and insurance agency in Auckland, New Zealand. We are highly respected, trusted and awarded agency. We have been helping kiwi families to reach their dream for 19+ years.