Fixed or Variable Home Loans
The Challenge
As many homeowners experience at the end of a fixed term, the client was confronted with “rate shock.” The current lender’s automated transition rates were not competitive with the broader market. The primary objective was to evaluate whether the existing lender could offer a retention deal that matched market leaders or if a full refinance was necessary to protect the client’s cash flow.
The Beltro Group Approach
Our team conducted a comprehensive review of the client’s financial position and the current lending landscape.
Our process involved:
Lender Negotiation: We initiated direct discussions with the client’s current financial institution to explore their most competitive variable rate options.
Market Comparison: Simultaneously, we benchmarked these internal offers against the wider market to ensure the client wasn’t leaving potential savings on the table.
Strategic Refinancing: After determining that the current lender could not match the top-tier rates available elsewhere, we identified a superior product tailored to the client’s $570,000 loan requirements.
The Result
By successfully navigating the refinancing process, Beltro Group secured a significantly lower interest rate than the client’s expiring fixed-rate fallback options.
Total Monthly Savings: Approximately $600.00
Annual Benefit: $7,200.00 in interest savings
This intervention not only eased the client’s immediate cost-of-living pressures but also ensured their long-term mortgage strategy remained cost-effective and sustainable.