Article: Our House = Our Home

Brush That  Mortgage Out  Of Your Hair with Carie TownleyBrush That Mortgage Out Of Your Hair with Carie Townley

Paying off your mortgage becomes second nature, like walking your dog or cleaning your teeth. But should you look at how you can pay it off sooner?

Pay more than you need
Extra repayments can save you thousands in interest, and cut serious time off the length of your loan. For example, if you pay $500 monthly, it leads to $6,000 a year. If more frequent payments aren’t possible, try and add any lump sums you get your hands on (e.g. tax returns, inheritance) to your mortgage.

Get an offset loan
This allows you to save money in an account attached to your home loan. The interest you earn on your savings is then offset against your home loan balance. So, if you owe $600,000 but have $100,000 in your offset account, you’ll pay interest on $500,000. It all adds up.

Run a loan health check
Check in along the way to see if you’re getting the lowest interest rate possible. If you’re not, you might need to refinance. Rates change often so what once was a good deal, may not be so competitive now.

A mortgage is one long term relationship we all wish would end. For more tips on how to say goodbye sooner, speak to your mortgage adviser.
Bank or mortgage adviser? Who should help you with your loan?

Getting a competitive, hassle-free loan on your own isn’t easy, so do you go with your bank or a mortgage adviser?
According to Rod Severn, from the Professional Advisers Association, advisers arrange about 40% of mortgages. And Kiwi’s are happy with their service with a Consumer Magazine survey finding the majority of those who’d used an adviser in the past five years were very happy.

Advisers have the time and financial knowledge we wish we all had. And, because they’re paid by your lender, you’re never out of pocket. Here are a few other reasons why it’s good to chat to an adviser:
• you get a wider range of choices
• they drive competition between banks and lenders
• they bring you the help you need, when and where you need it
• they help you navigate the complex home loan process from application to settlement and everything in-between

Want to know more? Talk to an independent mortgage advisor!

For a personal mortgage reduction analysis to identify the strategies that are in your best interest, contact Carie today on 0275 228 940, email .(JavaScript must be enabled to view this email address).

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