What to Know About Debt Consolidation and Mortgage Restructuring

What To Know About Debt Consolidation And Mortgage Restructuring

Managing your debt effectively can be a challenge, but there are comprehensive options out there for New Zealanders searching for solutions to their debt and mortgage issues. Debt consolidation and mortgage restructuring could be the right pathway for you. 

What Is Debt Consolidation? A Debt Solution For New Zealanders

Essentially, debt consolidation combines multiple debts into a single, more easily managed loan. These debts can be from multiple sources, such as personal loans, car loans, pay now & after pay, credit cards and home loans. Managing multiple debts and loans can be overwhelming and complex, potentially leading to missed payments, debt arrears and debt recovery from lenders.

When you consolidate your debt into a single loan, you can simplify your repayment structure and potentially reduce overall interest costs. One loan will be easier to manage than many small loans and debt commitments. helping you streamline your repayment plan. 

What Is Mortgage Restructuring? Restructuring Your Mortgage To Better Suit Your Situation

Mortgage restructuring refers to modifying the terms of an existing loan. Mortgages often last for many years, and over that time, your financial circumstances may change. So, what worked for you when you initially took out the mortgage may not suit your current life. 

Mortgage restructuring is often used to make the loan term longer or shorter, switch between fixed and floating interest rates or add more debt into the mortgage to consolidate other loans. 

If you are considering or already own rental investment properties the mortgage structure may need to be set up so that  it is tax efficient. With advice from your accountant we can ensure the mortgage is structured correctly.

Who Could Benefit From Debt Consolidation And Mortgage Restructuring? Is This Choice Right For Me?

Are these the right pathways for you? Debt consolidation and mortgage restructuring are often recommended to:

  • Homeowners who are managing multiple debts with high interest rates. Consolidating debt or restructuring your loans can make your experience more manageable. 
  • Borrowers experiencing financial strain due to changing circumstances. Life changes can impact your financial standing, potentially making it more difficult to pay off your debts. Restructuring the money you owe can help you with your personal situation  while at the same time keeping your lenders happy.
  • Those looking to simplify and organise their finances for better clarity. Juggling multiple debts and loans can be frustrating, and handling too many moving parts can potentially lead to forgotten payments and frustrated parties. Debt consolidation and mortgage restructuring offer you a way to simplify your finances and repay your debts in a way that works for everyone.
  • Individuals who wish to save on interest payments and improve long-term financial health. Consolidating or restructuring your debt can potentially help you save money in the long run due to updated interest rates.
  • Rental Property Investors need to ensure they operate within the NZ tax laws, and at the same time ensure their mortgage structures are tax efficient.

Key Steps To Take When Consolidating Debt Or Restructuring Mortgage

How should you handle the debt consolidation or mortgage restructuring process?

Work With A Mortgage Broker.A qualified mortgage broker will use their experience to assess your situation and make recommendations on how best to consolidate your debt. Then assist you to set up a new  mortgage that will be less complicated and at the same time save interest on your loans.

Your mortgage broker will act as your trusted partner, guiding you through the process while helping you understand important factors that will influence your results. They will provide a tailored loan solution comparing interest rates and lenders to ensure you get a competitive offer that meets your needs.

Restructuring Your Finances For A Better Future

If you’re considering debt consolidation or mortgage restructuring, you can contact Oliver Broomfield for exceptional mortgage and insurance services. We’re glad to help a variety of individuals find the right mortgage and insurance options for them, from first home buyers to self-employed New Zealanders. 

To get in touch, please feel free to call us on 027 275 1555 or use our contact page.

Together, we can set you on the right financial path.