That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
Don't Panic: Your Complete Guide to Mortgage Decisions in 2025
Navigating your mortgage refix in 2025 doesn't have to be overwhelming. This expanded episode dives deeper into strategic approaches that could save you thousands, following up on our popular checklist episode that prompted numerous listener questions.
Timing is everything when it comes to mortgage decisions. Discovering your fixed term end date too late can mean automatically rolling onto high floating rates around 8%, costing hundreds extra per fortnight. Give yourself 6-8 weeks before your expiry date to explore options properly. And here's something crucial to remember: your bank's default refix offer is rarely their best. Those who negotiate—or have a mortgage advisor negotiate for them—often secure better rates that banks don't advertise upfront.
With economists predicting gradual rate decreases, many homeowners are rethinking traditional approaches. Rather than locking in long-term fixed rates at potentially market peaks, more clients are choosing shorter one or two-year terms to maintain flexibility. A particularly effective strategy is splitting your mortgage across different fixed periods—like fixing half for one year and half for two years. This creates a hedging effect, reducing your risk exposure while allowing you to respond more nimbly to market changes. It's a sophisticated approach your bank likely won't suggest unprompted.
Before making any decisions, run through our comprehensive checklist: assess your current financial situation and upcoming expenses, ensure you have an emergency buffer, consider major life changes on the horizon, compare offers across lenders, and honestly evaluate your risk comfort level. Your mortgage is likely your biggest financial commitment—it deserves careful consideration rather than a fear-based, one-click decision. Need personalized guidance? Message us for our free printable checklist or join our fortnightly Thursday webinars by commenting "webinar" for the link.
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Kia ora, and welcome back to the show on how to refix your mortgage in smart way in 2025. This is the expanded version of the previous recording that I've done. A lot of you reached out to me after the checklist episode that I've done, wanting for me to expand a little bit more in detail. So hey, if you haven't listened to that one, go back and listen to the checklist for the refix, and if you want that checklist, please let me know. We'll send you one. So let's dive in.
Speaker 1:Today's episode is for everyone with a mortgage or thinking about one. We're talking about refixing your mortgage in 2025 and how to do it in a smart way. If your fixed rate is ending or you're floating and wondering what to do next. This is your checklist, your guide, your behind the scenes insight from someone who is walking this journey every day with clients just like you. First, let's talk timing. Do you know the exact date your fixed term ends? I've seen it too many times Someone misses that date and suddenly they're on floating rate around 8% without even realizing that can mean hundreds of dollars more per fortnight in repayments. So, step one pull out your loan statement or log into your app or message your bank and find that exact expiry date. Don't wait until the last minute. Give yourself and us at least six to eight weeks to explore options. Next, what is your bank offering? Often, they'll suggest a default refix option, but let me tell you that's not always the best offer.
Speaker 1:Some lenders quietly give better rates to those who ask or to brokers like me who negotiate for you. So don't just click, accept, ask questions and compare. I get it. Rates have been high, headlines are scary and no one wants surprise bills. But please want surprise bills, but please don't fix your mortgage out of fear. Ask yourself are interest rates expected to rise or fall over the next 12 months? Do I need certainty in my budget or can I handle a little flexibility? Am I planning any big life changes, like a move or a baby or renovation, in 2025,? Many economists are predicting that rates will start to drop slowly, and so far we have seen some drops already. So locking in a long-term fix at the top of the market could actually cost you more overall. Instead, more of my clients are choosing one or two-year fixes, keeping it short, riding the wave and leaving the door open for lower rates later on. But again, get a personalized advice for your situation, because not everyone's situation is the same.
Speaker 1:Now the common question we get asked should I split the loan? This is one of my favorite ones. Let's say you've got a mortgage of $600,000. Instead of fixing it all for two years, you could fix $300,000 for one year and fix the other for two years. Why would I do that, you might ask? Because it reduces the risk. Half of your loan comes up for review sooner, so you can respond to market changes. It's like hedging your bets. It also helps with budgeting.
Speaker 1:Your payments are staggered and you don't lock everything in at today's highest rate, and we've seen it happen before in 2025, when a lot of people were still locked in for a five-year rate or even a 10-year rate at that time. So when the low rates have hit, they were struggling to break their bigger loans to move on to the smaller rates. The bank won't always tell you this. Here is something not every bank will tell you. You can negotiate Even if you're not switching lenders. You can ask your bank for a better interest rate, a cashback for loyalty or a lower fee for early switching or break costs, and, as a mortgage advisor, I'd do this negotiating for you. You don't have to go and do it alone. So before you say yes to your bank's offer, shop around or talk to someone who can shop for you and look.
Speaker 1:Let's run through a quick checklist before you lock in your new rate. One what's your current financial situation? Has your income changed? Any new expenses on the horizon, like the school fees, health bills or job shifts? Two do you have a rainy day buffer? If rates stay high for another year, can you still manage your payments comfortably? Three are you planning anything big Renovation, a new baby, selling your home? All of this can affect how long you should fix. Four have you compared lender offers? Don't just look at interest rates. Look at fees, cashback, flexibility and how easy they are to deal with. And five what's your risk comfort? Are you someone who likes peace of mind and fixed repayments, or can you handle a bit of rate fluctuations to save long term? And if you want this checklist in writing, head to the show notes or message me. I've made a free printable version for you to use. Now.
Speaker 1:Look, refixing isn't just a one-click decision. It's a chance to reset your mortgage strategy. Take the time, get the advice and don't be afraid to challenge what your bank suggests. Your mortgage is likely your biggest financial commitment, so let's make sure it's working for you, not just at you. And remember I do this every day with people just like you. You're not alone. If you're feeling unsure, send me a message. I'm here to help. And don't forget that every fortnight, on a Thursday, I run a webinar. So if you want to hear more, comment, webinar and I'll send you the link. Thank you, until next time.
