With rates from 3.95%, these are some of the lowest rates in the New Zealand market we’ve ever seen. They won’t last. The Reserve Bank is talking about increasing bank capital and that means higher mortgage rates eventually. The old saying “a bird in the hand is worth two in the bush” is sage advice. Here’s the irony, you’ll wish you locked in some low rates after they go up!
You’ll hear from our banks that everything’s ok, but it’s not really. Banks are doing things like not letting clients rollover interest-only loans, or taking the full proceeds from a house sale to repay other loans. For you to stay in control, it pays to have a plan. Everything is ok, until it’s not and then it’s too late!
Sometimes there are simple things we can do to improve your cash flow. That could be a lower mortgage rate, or extending the term of your loan, or consolidating other debts, or even paying off your student loan. I won’t even try and explain that last one but it works!
Some simple changes to your mortgage and the way you manage it could take five years off your mortgage term and save you $40,000 in interest, and that’s just the beginning. It’s wholly possible to pay a mortgage off in fifteen years if you’re anal. If paying off faster is your goal then let’s do that. We love a challenge.
Money is the source of most arguments and relationship stress. Sometimes the cause is just the daft way you manage your money and that usually involves an out-of-control revolving credit. It can be an easy fix and we’re great at ‘brokering’ that deal.
You can also use our mortgage calculators to estimate what your repayments would be.