A classic case of this is a young family we had recently who had accrued some short term debt through replacement of a vehicle, some home renovations and a few other small extras. The bank had given them a couple of top up loans in the last year or so but had made them pay these amounts back over 3 and 5 year loan terms.

For a young family just getting started, it was not easy for them to take out a loan of $10,000 and being asked to make extra payments of around $85/fn when they could have only been paying $20/fn.

We ended up refinancing their lending to another bank and reducing their overall repayment by about $100/fn when all loans were considered.

Now obviously we'd love to see everyone reducing their mortgage as quickly as possible but the reality is that this couple were just getting established on the property ladder and would easily make up these payments in 5-10 years when they were both working full time and they didn't have childcare costs etc.

If you, or someone you know, are being forced to pay your loan over quite a short term but just need some relief from those high payments for a few years while you set up your life then we can help!
Sometimes we can make this work at your own bank, but if not then we'll look to find a better solution for you. It's about presenting your application right and finding the perfect option for you, not just one that suits the bank.

Drop us an email to office@mymortgage.co.nz or contact us and we can make a plan for you from there.

If this blog struck a nerve, feel free to share. You may also want to check out this one on "The Financial Life Cycle" which will provide some more clarity on why reducing payments now might still be a good fit for your long term financial plan.

We look forward to talking soon,

Adam, Claire and the My Mortgage Team