One of the pleasures with what we do as mortgage brokers is helping people save money, so to help a couple by refinancing a home loan to save over $5,000 made today a very good day.
So let’s look at how this happened.
It Starts With A Review
This couple had their existing home loan with Westpac and were sent a letter about their loan which was coming of a fixed term in August. They had originally fixed the loan of about $630,000 for 2-years in August 2015 at the rate of 4.69% so were not really happy when they got a letter from Westpac saying: You could refix. Enjoy 2 years of paying our current rate of 5.29%
They had heard how mortgage brokers will often be able to get better rates, or at least will know if this is a fair rate.
We had not arranged their mortgage. Like many Kiwis this was something that they had done themselves directly with Westpac.
Initially we had a conversation over the phone.
We Gave Westpac The First Chance
We simply discussed what Westpac had offered and given it seemed a bit high we decided we should approach Westpac and see what rate we could get.
Straight away Westpac came back with a lower rate of 4.85% which is a significant saving on the 5.29% that this couple had been offered. On a loan of $630,000 the savings of 0.44% would have been $2,772 over the first year alone.
That is a good saving and warranted them contacting a mortgage broker.
But as mortgage brokers we knew we should be able to do better, so we went back to Westpac and they eventually came back with a lower interest rate of 4.79%
It Was Time To Discuss The Loan
With these rates to offer, we arranged a meeting with this couple.
Before discussing the home loan interest rates, we looked at the way that the loan had been structured.
It had been structured by the bank as one loan of $630,000 which appears to be an easy way to structure a mortgage, but it does not allow the flexibility or security that a well structured loan should. We spent some time discussing how the mortgage should be structured and agreed on a better option.
I then introduced the home loan rates we had negotiated and this could were thrilled.
They were thrilled to be able to save so much, but that is where I had to stop them.
I knew that we could do better!
I Presented A Better Loan Offer
One of the advantages of using a mortgage broker is that they have a choice of banks.
I was able to present this couple with a loan that was structured to suit and was going to save them a lot of money.
It would save them $5,140 in the first year alone!
Mortgage Brokers With Integrity
My name is Stuart Wills and I have been a mortgage broker for 20-years.
In that time we have seen massive changes in the banking and mortgage broking industry. We have even had changes within our company (including the ownership and brand) to ensure that we have the best options and tools so we can provide the best options and service to you.
To last and be successful I have always believed that we must do the best for people – we must remain mortgage broker with integrity.
In this example we did not rush in with the intention of refinancing their mortgage, but we wanted to ensure that they got a fair deal from their bank. We gave Westpac every opportunity to present a competitive offer, but unfortunately for some reason they choose to let these people move to another bank where they could get better looked after.
Maybe you should review your mortgage and see if refinancing a home loan is going to save you money too.