Wednesday 21 September 2016

Choose The Best New Zealand Home Loan

Today I had a lady visit the office to discuss how I could help her get the lowest home loan interest rates, but the conversation focused on how to choose the best home loan which is quite a different and more complex subject.
So often we see people that have are so focused on just getting a house that they forget about the importance of getting their biggest debt right, or people that pop into their bank to arrange a home loan in the shortest time without really considering the options – what the various other banks can offer. The thing is, we think that knowing how to choose the best home loan is the most important thing of all.
A home loan is a big debt, and a debt that you will be paying back for a very long time.
So why do so many people spend so little time on getting their largest financial commitment sorted out correctly especially when there are some very good mortgage brokers that will review people’s loans (for free) and often suggest a few small changes that might save thousands of dollars each year.
Of course, as mortgage brokers we are always chasing the best interest rates too.

How To Choose The Best Home Loan

This is a question that everyone wants to know “how to choose the best home loan”…
When you consider all of the banks and other specialist non-bank lenders have a range of options it all equals a lot of choice for you. Of course, only mortgage brokers really have the range of home loan choices for you but even the banks have some options and could structure a home loan to e better for you rather than easier and more profitable for the bank.
As a mortgage broker it is always pleasing to have the opportunity to talk with people and explain the advantages of working with a mortgage broker.
Let me share the key things we talked about.

Interest Rates

Yes, we talked about the home loan interest rates and how the various banks take turns at offering the best interest rates.
There are some very good interest rates available at the moment and you can find the advertised interest rates on this website, but as mortgage brokers we can often negotiate even better interest rates that the advertised “specials” that you may see.
We do not suggest that you chase the lowest mortgage rates all of the time as your strategy is more important.

The Importance Budgeting

It is important to think about how good you are with money.
Some people are exceptionally good at managing money and not over-spending, while most of us are not as good at this. I personally find that budgets are hard and while we can all make a budget it is a whole lot harder keeping to it. We tend to have continuous ‘one-off’ expenses that wreak havoc to any budget we are trying to stick to – the dentist, new tyres, a school trip, new washing machine etc …
Many accountants will talk about the importance of budgeting and in business or households with good earnings it is easier, but the fact is that budgets do not work for most people and therefore we use other strategies to achieve the same (or better) results.

Debt Consolidation

Often when we review mortgages with people we discover that there is some other debt that they have. Most often it is a credit card that they are struggling to get rid of, a store card or hire purchase that has quite large weekly repayments or a student loan, tax debt or money owed to family.
It is great to be able to wrap all your debt up into your mortgage so you can take advantage of the low interest rates, but you need to also ensure that you do not get into more debt and preferably pay off any debt that you have consolidated into you mortgage.
We are happy to talk about debt consolidation with you and introduce you to our strategy for dealing with it.

Paying Off Debt / Mortgage Reduction

Almost everyone wants to pay off their mortgage faster and get themselves into a position where they are not having to pay those mortgage repayments every week, fortnight or month.
You may have seen people advertising the “magic formula” for paying off debt faster and while there are some simple things that can help, most of the debt reductionstrategies will take some effort and sacrifice over the short-term.
We are happy to discuss some of the strategies and help you implement those one’s that will work best for you.

The Key Is Loan Structure

When we meet with people either to arrange a home loan or to review an existing home loanwe almost always have the discussion about the ways to structure the loans.
Over the years we have seen different loan structures and concepts and have a pretty good idea of what works and what doesn’t. This is something that we have always offered as afree service and it does not mean having to change banks either.
When we look at creating or choose the best home loan for people we need to consider both the loan structure and a strategy that suits those people.
Structure and strategy is the key.



Contact one of our team: Freephone: 0800 100 939
Today I had a lady visit the office and we focused our conversation on how to choose the best home loan.

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