The mortgage interest rate is at a record low. Therefore, it can be interesting to discover the opportunities of refinancing your mortgage at a lower interest rate instead of completing your fixed interest period. The bank will have penalty rates for refinancing a mortgage which not everyone can afford. Then, an alternative might be interest rate averaging.
Using interest rate averaging, the interest rate loss of the bank, for breaching the contract, will be settled with an interest mark-up on the new lower interest rate.
Advantages of interest rate averaging:
Would you like to know if interest rate averaging could be interesting in your situation? Feel free to schedule a free appointment with one of our mortgage advisors.