September 2017's Property Gazette
How to Avoid Paying Extra Mortgage Fees
Interest rates remain low and the Reserve Bank has recently indicated they do not see them rising soon. While this remains great news for new and existing mortgage holders, there is one small catch…
Banks Are Receiving Lower Margins on Interest Repayments
Banks lend borrowers money to make a profit. No one disputes this, and there’s nothing wrong with it. After all, when we take out a mortgage, we borrow someone else’s money to buy a property. In return, we give them money back in the form of repayments and interest. In the past, this has been perfectly okay with the banks as margins between what they purchase the funds for, and then sell them for has been reasonably profitable. They have taken our interest payments as a profit and been satisfied.
Nowadays the problem is that as the interest rates are so low, the banks are not making as much margin as they would like to. They can’t raise their own interest rates as that would make them less competitive, reducing the number of new borrowers they attract. So instead, they have been reintroducing the ability of charging a fee to new borrowers when they take out a mortgage, or a restructure fee for existing clients looking to change their existing loan structures.
With a fee ranging from several hundred dollars up to a thousand dollars, it’s something borrowers have accepted as part of getting a mortgage. We disagree.
Don’t Pay Extra Fees. Here’s How …
As mortgage brokers, we know the ins and outs of all the lending products on the market. We know which banks charge mortgage establishment fees and which don’t. Before you talk with the bank, talk with us first! It won’t cost you anything – we work for free for you!
If you are not quite sure about the differences between a bank and a broker, then check out our blog and find out which one is best! Remember, we’re not here to make money from you …
Give us a call on 0508 466 356 or fill in our Contact Page form today.
First Home Buyers Seminar
At the start of August, we were pleased to run a First Home Buyers Seminar in conjunction with Brent Selwyn from Kannangara Thomson, and Kyle Pitman from Harcourts Grenadier. We had a full house of eager first home buyers, armed with plenty of questions around conveyancing, Kiwisaver, and deposit amounts. A big thank you to all who attended and helped make the night a huge success.
Our next First Home Buyers Seminar is being held on the 25th of October. Look out for more details on how to book or contact us for more information.
Keep up the fantastic work Scott! Always a pleasure to deal with!Rachael and Jason Tobeck - 22 October 2019
We are very excited as the consents were lodged for our build & hold project in Hamilton this week .Our rental purchase in Ashburton is now fully tenanted & is very cash flow positive!Ken & Louise Emshey - 12th November 2009 - 12 November 2009
As a visual person, I found the steps/diagrams illustrated by Scott extremely easy to follow.Divya Nair and Abhijith Sukumaran - 10 April 2019