Mortgages

Home ownership is a key financial planning goal for most New Zealander’s.  It is common to have  mortgage from a financial institution to purchase that home.

The way that you manage your mortgage can make a big difference to achieving the goal of having a home free of debt, and providing the platform to build up your retirement savings.  By paying attention to what you are doing with your mortgage, you could save yourself tens or hundreds of thousands of dollars over the life of the mortgage.

There are many factors to take into account when you are managing your mortgage including:

  • Do you have a fixed interest rate or floating interest rate?
  • How long should you fix your interest rate for?
  • Is a revolving credit mortgage suitable for you?
  • Should you use an interest only setup for your investment property mortgage?
  • How long should you take your mortgage out for?
  • How much should you repay on your mortgage?
  • Should you pay weekly, fortnightly or monthly?
  • Which lender should you use?
  • Should you change your lender?
  • What is your LVR (Loan to Valuation Ratio)?  What does this mean for your mortgage?
  • Can you use your KiwiSaver account to help with your home purchase?
  • What security are you giving the lender?
  • Can you make additional payments off your mortgage (lump sum or regular)?
  • What kind of insurance do you need to have in place when you have a mortgage?
  • What are your obligations to your lender, when you have a mortgage?

Getting the most appropriate set up for your mortgage can make a big difference in your overall financial strategy.  When our financial planning clients need assistance with their mortgage arrangements as part of their financial plan, this is a service we offer.  Please note that Moneyworks does not provide one off mortgage advice to non financial planning clients.

Moneyworks advisers have extensive experience in helping clients with the management of their mortgages as part of their financial planning strategy.

We work with a range of lenders and the service we provide to you is at no cost to you.  We are paid by the lender for arranging your mortgage, or helping you to fix or re-fix the interest rates on your mortgage if that is applicable.

If you would like to discuss your financial planning and the role of your mortgage within it, with one of our advisers, contact us by email by clicking here.

Mortgages Blog

For more information on mortgages, how you can use KiwiSaver to buy your first home, and relevant topical information, head over to our Mortgages, Money, Saving and Investing Blog.

Mortgage Repayment Insurance

For more information on Mortgage Repayment Insurance, check out our information at Mortgage Repayment Insurance.

Mortgage Repayment Calculators

It is important that your mortgage repayments are within your means.  To work out the options for you, we suggest you play around with different numbers and scenarios by using the excellent calculators at www.sorted.org.nz.

Here are some links:

Mortgage Repayment Calculator

If you don’t have a mortgage and want to know how much one could cost you, use this calculator to find out what your repayments could be and how long it could take to pay it off.

Mortgage Manager Calculator

If you already have a mortgage and want to know how to pay it off faster, use this calculator to see how increasing your repayments will make you mortgage free sooner, and also reduce the total interest you will pay.