Thinking of refinancing your non bank mortgage?
If you’re among the countless Kiwi homeowners using non-bank lenders, now might be the perfect time to look at refinancing your non bank mortgage to a bank mortgage. This transition could be your ticket to a more stable financial future, offering you the chance for reduced interest rates and a broader range of repayment options.
In this article, we’ll walk you through the benefits of refinancing your non-bank mortgage to a bank in New Zealand, and also explain the process that Mortgage Managers use with an exclusive bank arrangement.
Whether you’re aiming to save money or seeking greater financial security, this guide will illuminate the path to achieving your goals.
Have you ever wondered if switching your mortgage from a non-bank lender to a bank could be the financial game-changer you’ve been searching for?
Key Takeaways
- Refinancing to a bank mortgage can lead to significant savings on interest
- Banks offer more competitive interest rates compared to non-bank lenders
- A mortgage adviser can be invaluable in navigating the refinancing process
- We can refinance dollar for dollar with relaxed bank criteria (EXCLUSIVE)
- Maintaining a good repayment history and credit rating is crucial
Why Consider Refinancing Your Non-Bank Mortgage?
Refinancing your non bank mortgage to a bank can offer numerous advantages, especially in a financial landscape as dynamic as New Zealand’s. With the potential for lower interest rates, better mortgage terms, and improved financial security, switching to a bank mortgage can be a strategic move.
But why should you consider making this change?
Let’s dive into the benefits that bank mortgages can bring to the table.
Advantages of Bank Mortgages
Refinancing your non bank mortgage to a bank can be like stepping into a world of financial stability and security.
Traditional banks often provide a sense of reliability that non-bank lenders may lack. When you choose a bank mortgage, you’re not just opting for a loan; you’re aligning yourself with an institution that offers a broader range of options to meet your needs.
Whether you want to adjust your loan term, switch to a fixed or variable rate, or explore specialised packages, bank lenders have the flexibility to accommodate your preferences.
Another compelling reason to consider a bank mortgage is the potential for lower interest rates.
The mainstream banks typically offer competitive rates that can save you money in the long run. By refinancing your non-bank mortgage to a bank, you could reduce your monthly payments and/or pay off your loan faster.
This not only frees up cash flow but also provides peace of mind knowing you’re getting the most value from your mortgage. In essence, a bank mortgage can act as a sturdy anchor in the often-turbulent sea of financial commitments.
Access to Competitive Interest Rates
As mentioned, one of the most significant benefits of bank mortgages is the access to competitive interest rates.
Banks are in the business of attracting and retaining customers by offering rates that are often more favourable than those provided by non-bank lenders. This competitive edge can translate into substantial savings on your monthly mortgage repayments.
Imagine trimming down your expenses just by making this strategic switch!
Moreover, banks frequently roll out exclusive promotions and rate discounts that can further sweeten the deal. These offers can be particularly appealing if you’re looking to refinance and lock in a rate that’s kind to your wallet.
Over the life of your loan, these savings can add up to thousands of dollars — money that can be redirected towards other financial goals or simply enjoyed as part of a more comfortable lifestyle.
By refinancing with a bank, you’re not just securing a better interest rate; you’re also gaining access to more flexible loan features to provide solutions that align with your financial aspirations.
If you’re serious about making your mortgage work for you, tapping into the competitive rates offered by banks is a no-brainer.
Why You Need a Mortgage Adviser in Refinancing
Navigating the intricacies of refinancing from a non-bank lender to a bank can feel like a maze, and that’s where a mortgage adviser comes into play. These professionals are well-versed in the art of mortgage refinancing and can provide invaluable guidance throughout the process. With their expertise, you can be confident that you’re exploring all the options available to you and making informed decisions that suit your financial situation.
Mortgage advisers are also highly connected, with access to some exclusive financial solutions.
This means that good advisers can often secure better deals or uncover opportunities that you might not find on your own. By leveraging their knowledge and connections, mortgage advisers can help you present your case effectively to potential lenders, increasing your chances of securing a favourable bank mortgage.
A mortgage adviser doesn’t just help you find a loan; they guide you through the entire refinancing process, ensuring a smooth and efficient transition. From gathering the necessary documentation to negotiating with lenders, having a trusted adviser by your side can remove a lot of the stress and uncertainty associated with refinancing.
Ultimately, their goal is to help you achieve your financial objectives with the least hassle possible.
What You Need to Transition from Non-Bank Lenders to a Bank
Transitioning your mortgage from a non-bank lender to a bank involves several key considerations, but the potential rewards make it worth the effort. To embark on this journey, you’ll need to meet certain criteria and prepare the necessary documentation to present your case to a bank. Let’s explore what you need to make this transition as seamless as possible.
With the exclusive arrangement for refinancing your non bank mortgage there are a few key things to consider:
Firstly, one of the most attractive aspects of refinancing with a bank is the option to refinance dollar for dollar with more relaxed criteria. This means you can switch your existing loan to a bank without having to prove your income in the same rigorous manner that banks typically require. This is particularly beneficial if you’re self-employed or have irregular income streams.
However, it’s essential to have at least 20% equity in your property to qualify for refinancing your non bank mortgage. This equity acts as a buffer for the bank and demonstrates your financial stability.
Additionally, maintaining a good repayment history for at least three months with your non-bank lender is crucial. A solid repayment track record shows banks that you’re a reliable borrower and increases your chances of securing a favourable loan offer.
Your credit check and account conduct are also key factors in the refinancing process. Banks will evaluate your credit history to assess your reliability as a borrower. A good credit score and positive account conduct will work in your favour, potentially leading to better interest rates and loan terms.
It’s also worth noting that banks are generally more lenient with the dollar to dollar lending approach, provided there are no mortgage arrears.
By preparing these elements in advance and working with a mortgage adviser, you can position yourself as an attractive candidate for refinancing your non bank mortgage to a bank. Ultimately, transitioning from a non-bank lender to a bank is about demonstrating your ability to pay the mortgage and taking advantage of the benefits that traditional banks have to offer.
Conclusion
In conclusion, refinancing your non-bank mortgage to a bank in New Zealand can open doors to significant financial benefits. From accessing competitive interest rates to enjoying a broader range of mortgage options, the advantages are clear.
By meeting the necessary criteria and working with a mortgage adviser, you can navigate the refinancing process with confidence and ease.
Are you ready to take the leap and explore the potential savings and stability that a bank mortgage can offer?
Frequently Asked Questions
Can you refinance through a different bank?
Absolutely, you can refinance your mortgage through a different bank in New Zealand. This process involves taking out a new loan with another bank to pay off your existing non-bank mortgage. By doing so, you might secure a lower interest rate, better terms, or additional features. It’s crucial to compare the different offers from various banks to find the best deal that suits your financial situation. Keep in mind any potential fees or penalties for breaking your current mortgage agreement.
Who are non bank lenders?
Non-bank lenders are financial institutions that offer loans and mortgages but don’t hold a banking licence.
They often provide more flexible lending criteria compared to traditional banks, making them an appealing option for those who might struggle with a bank’s stringent requirements. They include finance companies and specialist lenders. These entities are typically regulated by the Financial Markets Authority (FMA) in New Zealand, ensuring they adhere to specific standards and practices.
Non bank mortgages can be helpful at times, but you should look at refinancing your non bank mortgage to a bank to get better terms.
Can you get a mortgage without a bank?
Yes, you can obtain a mortgage without going through a traditional bank.
Non-bank lenders, such as credit unions, building societies, and private lenders, provide mortgage options. These lenders often offer more flexible terms and may be more willing to work with individuals who have unique financial circumstances. However, it’s essential to thoroughly research and compare the terms and conditions, as they can vary significantly from those of banks.
Can a bank not let you refinance?
Indeed, a bank can refuse your refinancing application if you don’t meet their criteria. Common reasons include poor credit history, insufficient income, or high debt levels. Banks assess your financial situation to ensure you can manage the new loan. If denied, consider improving your financial profile or exploring other lenders who may be more accommodating.
It’s always a good idea to consult with a financial adviser for guidance on enhancing your eligibility for refinancing.