Some people have huge loyalty to their banks and all of their banking and their mortgage is with the one bank, whereas others treat banks like any other product supplier and will deal with various banks and will do a mortgage refinance if it makes sense.
As mortgage advisers we see four common reasons for mortgage refinance, but of course there are numerous other reasons too.
The Four Common Reasons For Mortgage Refinance
Interest Rates are probably the most common reason for mortgage refinance.
Not because of the rates itself but more the fact it is easy to quantify and when you are not getting offered a competitive rate it is easy to feel you are not being valued by your bank.
Things seem too hard – it is hard to find the right person within a bank to speak to about anything apart from the usual enquiries.
The front-line bank staff generally have only had limited training in the banks products and minimal experience so when approached with anything ‘outside of the box’ they are unsure what to do.
The bank said “NO” – of course nobody likes it when the bank says “NO” but the reality is that banks are not always able to approve every request.
The key problem is many people accept what the bank tells them and think that if their current bank cannot do what they want that no other bank would be able to – wrong! – when a bank says “NO” all it means is that someone within that bank cannot say “YES” and that could be because something was presented slightly wrong, or it may be that it falls outside of that specific banks appetite at that time.
It could also be that another bank would have no problems saying “YES” to you.
Policy and staff changes – we all hate change, but banks are always changing things and especially staff.
Policy change can be frustrating but changes are constantly happening within the banks and it always tends to favour the bank rather than the customer.
On the other hand you cannot blame the bank staff as anyone with ambition would be seeking promotion and while that may help that person it is difficult for the banks customers.
How Mortgage Advisers Are Different
As a mortgage adviser we have advantages over the banks. In fact if the banks were perfect then there would be no reason for mortgage advisers to exist, but banks have a number of issues and that is why you are seeing more mortgage advisers in New Zealand.
Most are actually mortgage brokers who hunt for the ‘deal’ and then move on, but at North West Mortgages we are mortgage advisers as we will source loans for people and then help manage those loans over time to ensure that our clients get the best from their home loans and can pay the loans off faster.
Our mortgage advisers also can answer the four common reasons for mortgage refinance;
We know which banks are offering the best mortgage interest rates and can therefore negotiate on behalf of our clients with most banks. We do this negotiation even when we have not arranged the loans and we are paid by the banks; hence can offer this service for free.
Sometimes situations mean things are quite difficult, but our advisers know what needs to be done to make things work. We also have a refinancing calculator on this website to help you work things out for yourself.
With a choice of banks and other lenders there is usually a way to raise the finance that you want. Our advisers typically are paid on success and therefore hate the word “NO” as much as you do, and will work extremely hard to ensure the loans are approved. We are not tied to any banks and therefore will always work for you to ensure you are getting the best deals, so if this means we need to refinance your mortgage then we will.
We know that banks change staff all the time and this frustrates people like you. In our business we want to be there for you for life and therefore be available to help negotiate with banks and raise finance as required.
Get A Mortgage Adviser To Help Refinance Your Mortgage
It really does make a lot of sense to speak to a mortgage adviser about your mortgage refinance and it is better to approach us before you speak to your existing bank so that we can presents things in a manner to ensure the most chance of the application being successful.
