independent advisors to business people with high expectations

There’s lots of talk at the moment about interest rates.  Whether to break your current mortgage and take advantage of the low rates, or keep paying at a higher rate.  A lot of that depends on your individual mortgage of course.

Break fees are sky high!  Some banks are worse than others … by a long shot.  There seems to be a fair bit of raping and pilaging going on as banks cash in on the consumers desire for a better deal.    I know the banks have bought the money at the higher interest rate and we can’t expect them to carry the difference if we break the mortgage.  But honestly, to be fair I think some banks are not just covering costs, they’re making a generous profit out of the deal! 

In any event, we suggest you do your sums well.  Find out what your break rate is.  Work out what the saving would be if you broke the mortgage now.  Take into account also, that if you don’t break your mortgage now in preference to paying out the remainder of the term (maybe another year or so), these same low interest rates may not be available then. 

It’s a bit of a gamble.  Interest rates may still go lower.  And remember, every time interest rates drop your break fee will go up. 

You might also want to take into account other issues such as … should I break and change banks? Can I release some assets from the clutches of these wealth predators? (oops, we mean banks). You’ll also need to check out the flexibility in the terms and conditions that a new mortgage may present.

Make sure you do your research and your sums well.  Make informed decisions.

We’d love to hear what you have to say on this hot topic.  Leave a comment on the blog or send us an email.

Do you have any questions?  Please don’t hesitate to contact us.  We’d be happy to discuss them with you.

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