It’s not me… it’s you.

Does it feel like you need to break up with your current mortgage?

While no one enjoys making those repayments to the bank, they are a necessary part of borrowing money.

But in saying that, because mortgage repayments are one of your biggest financial commitments, you need to ensure that they work for you and your current living situation.

These are the 5 biggest signs that your mortgage isn’t working for you and what you can do about it.

#1: Repayments Feel Harder Than They Should

Is it a struggle to pull the money together for your repayments each month? Then it’s time to look at how your mortgage is structured. There may be a way to ease the burden each month and align your repayments with your earnings.

It is possible to change the date your repayments are deducted so that it aligns with your wages coming into your account. It may also be possible to change the frequency of your repayments so they fit better with your budget. You may even be able to adjust the interest rate, term, or structure of your mortgage to reduce the amount you have to repay each month.

These questions can all be answered by completing a review with your mortgage adviser. Your adviser can help establish your current financial position and what options might be available to adjust your repayments.

#2: Your Financial Situation Has Changed

When was the last time you looked at the structure of your mortgage? Was it when you first obtained it? For many Kiwis, the answer to this question is a resounding yes!

One big mistake many homeowners make is setting and forgetting about their mortgage. A lot can happen in a year, and even more can happen in five years. Your current financial situation may look completely different from when you last reviewed your mortgage.

If you have changed jobs, family situation, or earnings, then it’s time to undertake a review. You may be able to change your repayments to meet your current earnings. This could make your repayments easier, or if your financial situation has improved, you may even be able to increase the amount you are paying to shorten the term of your mortgage.

Again, the best way to unlock the available options is to undertake a review of your mortgage with a trusted adviser – like the team here at Mortgage Suite.

#3: You Are Planning Renovations

Love your location, but not everything about the house? Then it might be time for some renovations. Renovating is a great way to get the most out of your property by updating rooms that no longer serve your needs or by adding more living space.

But those renovations are going to cost money. You are either going to need some savings to draw on or to borrow funds to cover the renovation costs.

A mortgage adviser can help you understand how much you can borrow and how the additional lending can impact your existing mortgage. You may be able to draw on additional repayments you’ve made in the past, access revolving credit, or top up your current mortgage.

Once you have all the information in front of you, you’ll be able to see how the repayments might affect your current budget and what you can achieve with any funds obtained.

#4: Your Fixed Term Is Ending

Everything must come to an end eventually. Sometimes, that’s a good thing. Especially if your mortgage is currently fixed at a high rate. But sometimes, it’s not such a good thing if a favourable fixed-term rate is about to expire! It could mean an increase in your mortgage repayments.

If your fixed term is due to expire soon, it is likely that your bank will already have offered you a new rate. Most often, this will be via email or in your banking app. Don’t make the mistake of automatically accepting the new rate without doing some research first.

The end of a fixed term is a great opportunity. Not just to secure a new interest rate, but to review your payment frequency, amounts, and mortgage structure. So, don’t rush into accepting a new rate without first working with your mortgage adviser to find the best deal for your situation.

#5: You Feel Like You Are Drowning In Debt

The cost of everything has been climbing. Food, power, water, rates, and insurance have all gone up in the last year. The cost of living is at an all-time high. It can feel really hard to get your money to stretch across all these increases.

You may be forced to utilise credit cards or Buy Now Pay Later schemes to cover what you need. These services are great to help you out of a bind, but if you use them too often, you can easily get trapped in a cycle of spending your money before it’s earned.

Debt can be a killer for your finances. And mortgage debt might only be one piece of the puzzle. Personal loans, credit cards, and Buy Now, Pay Later can all make you feel like you are drowning in repayments. If this is how you are feeling right now, then a chat with your mortgage adviser could really help.

There are plenty of options for debt consolidation, offset accounts and mortgage restructuring that could help ease the pressure on your cash flow.

Time For A Chat?

Does it feel like your mortgage isn’t working for you right now? Then, we’d love to discuss what options might be available to you.

We’ll have a chat about your current finances, your short and long term plans and come up with a mortgage solution that works for your lifestyle.

Book a time to chat with the Mortgage Suite team now.