Business Finance Re-Finance Health check offering a wide range of Home Finance options

Business Finance Re-Finance Health check offering a wide range of Home Finance options

A recent survey of New Zealanders with mortgages showed that while over 39% of them knew they could get a better deal than their current loan only 4% of them were actually doing anything about it. The rest thought it would be too difficult to change.

Many of us fall into the same trap: we take out a mortgage when we buy our house, keep making the monthly repayments and try to forget that it exists.

We cannot stress strongly enough how important it is to constantly review your mortgage. It is quite possible that you are paying thousands of dollars more than you need to in interest charges.

To make it as simple as possible for you to carry out such a review we have added a Mortgage Health Check to the services we offer. As a result we have been able to save clients tens of thousands of dollars and take years off their mortgages simply by structuring new loans for them. We may be able to do the same for you and the best part is you save money while we do all the work.

Not only will we search the interest rates of a number of lenders to ensure you get the best possible deal, but we will bring to your attention many of the benefits of modern home loans that you might not currently be enjoying. For example, did you know you could split your loan between fixed and floating rates? You’ll get the benefits of a fixed rate loan – protection from interest rate increases and certainty of repayments – as well as the flexibility of a floating rate loan.

Certain lenders now let you credit your salary directly into your home loan and then withdraw money when you need it, simply by making a phone call. By lowering your daily loan balance, this also cuts your interest charges. A lot of people like to keep their savings and their debt separated, but by crediting your salary into your loan each month you are effectively earning interest on your savings at the same rate you are paying it on your mortgage. Look at the following graph to see the effect it can have.

This example is of a 25-year, $100,000 loan at an interest rate of 8.30% p.a. By crediting an example $45,000 salary into this loan, and then withdrawing $1800 each month for expenses this person was able to save $73,500 in interest charges and pay their loan off 12 years sooner.

Features like this do not mean you have to compromise your lifestyle. They let you ensure your income is working the best it can for you and help you become debt-free sooner. The borrower in the above example only had to put the $60 they normally put in their savings account each week into their loan to get the desired result. And if they needed any extra cash, they were able to withdraw any of the extra funds they had paid at any time.

Our Mortgage Health Check is confidential, free with no-obligation that can take as little as 15 minutes.

Remember all you have to lose is your debt!