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KiwiSaver™- A Vital Link for Home Ownership and Retirement

There are still people unsure and unaware about how to use their KiwiSaver™ fund for home ownership. This is an area in which we can assist and invite your calls to do so.

We work with borrowers of all ages. Some may be about to embark on their first home purchase and need to access KiwiSaver™ funds to assist in their home ownership application. Others may be existing or previous home owners who have experienced a broken relationship and now want to re-enter the home ownership market individually. In certain circumstances, these borrowers are able to access their KiwiSaver™ funds under the Second Chance option available.

Like many government initiatives, there have been changes to KiwiSaver™. Being aware of these changes allows you to take advantage when it is relevant to you. Here are the latest tweaks to what we believe is a fundamentally solid retirement programme with great benefits for the ‘here and now’.

  • Anyone who is employed between the age of 18 and 65 and is earning a regular income should be a member. Forget that the Government no longer give members a $1,000 kick-start contribution at the time of joining. Don’t be discouraged – there are still so many benefits!
  • Currently 3% of your pay goes in as automatic compulsory saving. You can – and should – look to top this up when circumstances allow.
  • Your employer contributes 3% to your fund. This is a 100% return on your investment.
  • Each year the Government contributes a lump sum of $521.43 to your fund as a member tax credit, providing you contribute a minimum of $1,042.86 annually to qualify.

On top of this, your Fund Manager should be rewarding you with a return on your investment as well.

Where else can you receive in excess of a 100% return on your investment? What a fantastic way for first home buyers to save a deposit for their house.

As a first home buyer (or in some cases – a second chance buyer) you can access all of your personal and employer contributions, except the initial $1,000 Government kick-start contribution, as your deposit funds for a house purchase. In addition, you may be entitled to a Housing New Zealand Grant to a maximum of $5,000 (or if building a maximum $10,000).


To find out more about how to make your KiwiSaver work for you, please contact us.


The Age Old Decision... to Fix? or to Float?

As a business, this is something we are asked by most people we talk to. Generally, as consumers, we look for certainty in our purchases – will the car we buy today last into the future? Will the phone I buy today last until next year; before a new model comes out? Will the mortgage I fix work for me in 2 years’ time?

There is significant disparity between floating and fixed rates in the current falling interest rate market. We are currently recommending shorter term fixed rates between 6 -24 months. We believe interest rates will fall further over the remainder of this year and into 2016.

For anyone re-fixing onto a lower rate, this is an ideal time to re-consider your repayment amount.

A minor increase can substantially reduce the mortgage term and effectively save a considerable amount in interest.

For example, an increase of $30 per week in loan repayments on a $350,000 mortgage over a 30 year term @ 5.00 % pa interest rate will reduce the loan term by 4 years! More significantly, this will save $50,000 in interest costs.

If you would like to know how to implement these changes so that you can take advantage and save, please give us a call.

 


Waking Up to the Banking System

Banks don’t stop. In fact, they are continuously contacting (some suggest pestering) our clients who have fixed rates expiring, with offers of:
  • A specialised team – of people you know and trust?
  • Good rates – compared to?
We applaud that banks have finally realised that they serve consumers, customers and clients. However, we still need to highlight the obvious differences between what we do and what a bank simply cannot offer.
  1. We know what is available within the market – not just within a single bank
  2. We know what different offers are on the table and what will suit you. We spend time to find out what your needs are, as opposed to what we have to offer.
  3. We listen to what you need. We say what we believe, drawn from listening to your needs, coupled with our vast experience and training.
  4. We don’t focus on meeting KPI’s or Sales Targets. We look in-depth at the market’s behaviour and how different scenarios may impact you if you fix or float.
  5. We are free to you – there is no cost built into our service.
  6. We are comprehensively aware of what’s happening in both local and overseas financial markets and economies.
The reality is we give you options and financial information which provide you with knowledge!

Call the team who can help!

Wayne

PLEASE READ...
All borrowers should use the service of a mortgage adviser to ensure they obtain the best impartial advice on all aspects of their mortgage, at no cost to the client. This means you or the ones you love and care about.


Winter Warmer with a little Money Business thrown in!

This winter warmer newsletter will definitely provide interesting discussion in the coming weeks. We see many of you coming off fixed rates; looking to secure some of the tempting low rates being advertised. It’s a consumer’s market and as the consumer we suggest that you start calling the shots. To do that, you need the right information and advice. If you have any questions after reading this, feel free to get in touch – we are happy to help!

Quick Notes

Petrol price drop – making it easier on the average household. Would be great to see transport costs come down to reflect the drop.

Fixed interest rates falling – how far is yet to be seen – however with a belief they will remain around this level for the next 2 years we would be suggesting fixing for up to 24 months to take advantage of the low rates without risking a sudden rate rise.

Milk Payout has decreased – although not great for our farmers, it is slightly balanced against the lower lending and lower petrol costs.

Rock Star Economy – our experience is ‘steady as she goes’ and that the so called “Rock Star” economy mentioned by the media is not reflected in the bottom-line profit of businesses outside Canterbury and Auckland. Most are no more profitable now than they were in 2007.

Seven years on from the onset of the Global Financial Crisis (GFC) in most countries the debt to Gross Domestic Product (GDP) ratio is now higher than it was before the GFC. A report by consultants McKinsey & Co titled “Debt and (not much) De-leveraging” says that between 2007 and the second quarter of 2014 global debt grew by US$57 trillion, or 40%, to US$199 trillion – sobering and frightening stuff.


Worried about something unexpected happening?

Having provided lending support for over 18 years and personal risk cover for the past few years, we can now offer Fire and General Insurance, so you don’t have to worry about those unexpected events that may occur.

This opportunity means you can literally get all your financial matters sorted in one place with someone who will be available whenever you need them in the future. You don’t need to concern yourself with who to ring– it’s simple – just call us! Mortgages – Life, Income Protection & Mortgage Insurance – Health & Hospital Cover – Home & Contents – Vehicles & Boats– simple call us on 07 856 2960!


Important KiwiSaver Changes - the facts

These come into effect 1st April 2015. Changes and amendments to KiwiSaver will affect both the first home withdrawal entitlement from a Kiwisaver account and the separate first home subsidy administered by Housing New Zealand.

Until now if you were to buy your first home and access your KiwiSaver funds there has been a limit on what you could withdraw. You have only been able to withdraw:

• Your own contributions. 

• Your employer’s contributions.

• Any investment returns from those contributions.

From April 1 2015, having been a KiwiSaver member and contributor for 3 continuous years or more, you can now also withdraw the annual member tax credits of $521.43 per annum. The only portion you cannot withdraw is the initial Kick-start payment of $1,000 made by the Government. This provides you access to more of your funds allowing you (or your offspring) greater opportunity to get into the property market.

The other significant change that impacts home owners is that from 1 April 2015 the first home subsidy will be replaced with a new Kiwisaver Home Start Grant.

The Home Start Grant allows people buying a newly built home to access double the previous subsidy. This should stimulate some property growth with increased lending for new housing construction. Remember this is for FIRST HOME BUYERS and provides another option to assist with home ownership.

The existing Grant will remain unchanged from the current First Home Subsidy for persons purchasing an existing home.

The house price cap levels for Home Start Grants and Welcome Home Loans have also been increased to be more in line with actual property prices.

• Hamilton, Tauranga, Wellington and Christchurch are now capped at $450,000

• Auckland - $550,000. 

• Most other areas - $350,000. 

The Home Start Grant and Welcome Home Loans are NZ Government subsidy programmes that perhaps aren’t as widely advertised or understood as they should be.

Our job is to see if these programmes can offer you or someone you know the assistance they need to get into their first home. To find out more about these programmes contact Wayne


Landlords being stung by banks!

LANDLORDS being STUNG by banks!

Banks are calling in loans from one property when another is sold. If you are a landlord considering selling a property to release capital, you should first be clear how much money your bank will let you keep.

If you have an “all-obligations” mortgage and a number of properties and loans, you could be seriously affected. We’ve been called a few times in the past month by some of our existing clients regarding this and are urging other people in this situation to make contact and let us check your loan documentation in order for us to assist if we can. The last thing you want is to sell an asset to release some capital and find you are left out of pocket when you need it the most. 

Lenders will often require an “all obligations” mortgage where a client owns more than one property and has several loans. They will endeavour to cross-collateralise security over all properties. This is why it is important to spread your borrowings across a number of lenders and is something often overlooked by the majority of property investors.

If you are being affected by this, call us and let us provide you with some experienced advice and support. 


Stay Out of the Mortgage Jail

With interest rates continuing to fall, many banks are offering seemingly great deals on long term fixed rate options
for people wanting finance for:

• Refixing and refinancing
• Property purchases
• Alterations and home renovations

On the surface taking advantage of a low rate long term seems sensible – but our take on this is that with uncertainty still playing out in the marketplace and possible further rate reductions, taking on a long term option may not be the best decision.

The mortgage lending market is dynamic. Locking in a 5 or 10 year option doesn’t make sense. Your life is as dynamic as the market. Once you have signed that 5 or 10 year seemingly low rate long term fixed rate contract, extracting yourself from this is a costly exercise with early repayment fees charged.

Recent feedback from people we have been seeing is that there is considerable focus from banks on this option with little regard to people’s best interests and circumstances. Be aware Banks can only provide one product – theirs.

As a broker we have access to the majority of reputable lenders throughout NZ. This means we can consider MORE options giving you MORE choice. There is no fee for our service and we save you time trying to search out the best deal yourself – we talk daily with lenders and know just what is available in the marketplace any given day and know what we can negotiate and secure on your behalf.

So if it’s time to..

• Refinance
• Refix
• Buy another property
• Get the renovations done

Call us to evaluate your situation and ensure that you:

a) Aren’t locked into an unfavourable situation in the near future
b) Have the best possible rate
c) The flexibility that suits your needs
d) A mortgage that works for you and helps you get ahead.

Finally contact us when you want to refix your interest rate – it costs you nothing except a phone call. We will negotiate the best rates 

for you and most importantly advise you on what we see happening in the financial markets and therefore what may be your most suitable option at the time.


How do you know you have the best rate and most appropriate fixed rate term if you go directly to your lender?

You don’t!

Call anytime – I’m here to help!

Wayne

Bribery Not required

I was with friends the other night for dinner when the discussion came up around customer service, or lack thereof in some cases. We noted that although the food was really good, the service just wasn’t up to the normal high standard.

‘Disinterested’ at best, rude at worst would be my description.

Almost everyone at the table was able to highlight at least one negative customer service experience that week alone. Of course it has to be said everyone has ‘off’ days and we can all be forgiven for those.

In fact you will nearly always get a second chance if the reverse occurs - the food was not of the normal high standard however the service was very good.

The discussion turned to what is good customer service: 

• Knowing who to call when you have a problem, or just a query, and getting that person on the phone.

• Having someone know your name.

• A smile when you are doing business.

• Having the person do the job correctly – first time.

• Not having to do something that you thought you were paying the service provider to do.

• Not having to rely on points, bonuses or special gifts, to keep my business – the service should be good enough for me to NOT want to go elsewhere. – i.e. Bribery should not be required for good service!

Naturally the lending/banking industry comes to mind in my line of work, and the most common complaint we hear in our office is – “my old bank manager left, and now I have no idea who to contact”.

Without being too immodest, I have built this business on nothing flash – just good old fashioned customer service and common sense.

• The phone rings we answer it.

• You leave a message, we return it,

• You need help, we provide it.

• You don’t know what bank to go to for the best deal – we provide you with options so you can choose what suits you.
So if you are tired of the bank hounding you trying to sell you another product, tie you into a longer period for your lending or just have no idea who to call to discuss what you should do – CALL US and get the customer experience you’ve been looking for and should deservedly expect!


1st home buyers with only 10% deposit

Buying your first home could be closer than you have been led to believe. There are banks that are crying out for your business as a first home buyer even if you only have a 10% deposit saved. CALL US if you or someone you know is in the market for their first home and have been worried about not having a 20% deposit. We may be able to assist.

There is still a myth that you MUST have a 20% deposit to purchase a house in NZ. The FACT is you can purchase a house with a 10% deposit from a wide range of lenders.

In 2012 NZ Registered Banks were forced by the Reserve Bank to REDUCE their lending to people with lower deposits. The key here is REDUCE, not completely stop lending to people with only 10% deposit raised.

And it’s right now that we are organizing LOW Deposit lending for people all across the Waikato and beyond, ensuring that people can actually realize their dream of home ownership. These mortgages are competitive and favourable for our clients with flexibility and added value from the lenders.

Home ownership is still affordable in NZ – and we would be suggesting that the time to get in is now! 


Stay Calm and in control

When it comes to borrowing money many people feel like they have little control over their circumstances and that the banks hold all the cards. The reality is that you do have control – provided you stay calm and consider the following

– Control What You Can.

1. Your Debt - You can determine how much you want to borrow. Yes,the banks will have limits and criteria, however you know what limit is comfortable for you.

2. The Cost of Your Debt- By considering the various options you can reduce the COST of your debt (the amount of interest you pay long term). Examples of this are:

• Fixing the term to lock in a low interest rate
• Saving a little more and increasing the amount of your
deposit
• Increasing your regular weekly, fortnightly or monthly
instalments. This can be done on either fixed or
floating interest rate loans.
• Revolving credit – this does require discipline but can
be a useful tool in reducing the cost of your debt
• Repaying lump sums at regular intervals
All this can be achieved by sending us an email with your
instruction and quoting your loan account number


3. Who you borrow from – yes it’s a free economy! You can change your lender at any time as this is a factor
you do have control of. Each lender offers different benefits/advantages – so as your lifestyle changes, your
lender may need to change too!

4. Control the conditions of your mortgage Although Banks have terms and conditions, by shopping around, you can choose a bank with conditions that benefit you and don’t cost you more. An example of this is that some banks insist that you obtain a Registered Valuation irrespective of whether you are borrowing less than 80% and where a purchase price exceeds $500,000 or in the event the purchase is by private treaty. Other banks do not require this and are more flexible. So choose the lender according to your wants and take back the control. 

Furthermore, they are now endeavouring to dictate who does the Valuation for you – another example of taking
away your choice. As a broker we are able to evaluate your wants and needs and find a bank that best suits you as opposed to a bank selling you what they offer. 

Call anytime – I’m here to help!


Waynes Words of Wisdom

Anything Wayne Can Do We Can Do Better…

or so they say! Some banks are making a concerted effort to contact anyone on their lending register whose mortgages are coming off fixed rates. Because banks remunerate staff according to targets there is pressure on staff to sell, sell sell!

One bank representative even assured a client that any refix offer Wayne could provide, he could do better. The reality is they can’t. They have one product – their bank; they don’t have the ability to shop around - we do.

We match your needs with bank offers and then negotiate. We don’t negotiate with a bank to set a deal and then find out what your needs are. Again it is your choice, however for unbiased advice and support – talk to us.

Remember we are your ongoing Mortgage Manager and Financial Adviser and as such will always have your best interests in mind – not the banks.


STOP PUTTING IT OFF!

You are young, possibly past the‘I am INVINCIBLE’ teenage years, but young nonetheless. You are healthy, making plans, getting started and on the way to the life you’ve decided you want.

And yes I am referring to those of you in your 40’s as well. It has been said that 40 is the new 30, and 30 the new 20 - isn’t it! So yes you could be one of the young ones I am referring to! 

SO WHY ON EARTH ARE YOU PUTTING OFF YOUR INSURANCE!

Ahhh it’s because you are young and healthy, you don’t need it. It’s a cost that you’d rather save. Its money better spent on dinner out with friends, or buying yet another gadget.

WITHOUT BEING RUDE, IF YOU THINKTHIS, I REALLY WANT TO SHAKE YOU!!

Because it’s this belief that sees so many people end up reliant on state support at some stage living out a meagre existence simply because they put off protecting themselves and their families.

I know health insurance policies,income protection and even mortgage insurance are not exactly exciting conversation pieces. They are however SOME OF THE MOST IMPORTANT conversations you SHOULD HAVE, and you should be having them with your partner, your adult children and with ME!

Why? It is simply because you are young and healthy, that YOU SHOULD BE INSURED! When you are fit and healthy is the best time to take out insurance.  It gets much more difficult,and possibly much more expensive, when you are older and are experiencing health issues.

It’s too late when you are older and are sick!

Some Statistics that should castsome reality on your life –

1)            8000people per annum have strokes in New Zealand 1

2)            At the time of the last census, 20% of New Zealanderslived with a disability 2

3)            Cancerwas the leading cause of death for both males and females in NZ in 2009 with8437 people having cancer recorded as the underlying cause of death 3

4)            Thereare an estimated 60,000 stroke survivors in New Zealand.  Many are disabled and need significant dailysupport 4

1 The Stroke Foundation of NZ 2010/ 2 2006 disability survey, statistics NZ 2006/ 3  Ministry of Health. 2012cancer / 4  The Stroke Foundation of NZ 2012

Now we all believe it will never happen to us. But it does, it happens to a lot of people.  I meet people almost every week that tell me that someone in their family or circle of friends has been diagnosed with a serious medical issue. Then they tell me how it’s impacted their lives, the things they have had to give up, the cutbacks they have had to make and the costs that they never thought of.

And there is often not a lot I can do, because it’s too late if they haven’t already got insurance. Of course, if they are a client the conversation tends to be more positive and focused on solutions.

The facts of insurance:

·        Eating the right foodand staying fit and healthy is under your control. Everything else one couldsuggest is not.

·        As you age you aremore likely to experience health issues (this is not to say that young peopledon’t get sick)

·       Insurance is a method of protection. Just like vehicle insurance, you know that the mere fact you drive a car puts you at risk of an accident.  Insurance is the same – the fact that you are a human being means you are at risk of having a/some health issue/sat some stage in your life.

Age and experience allows us the benefit of hindsight – so irrespectiveof whether you are 22, or 52  – use that knowledge and get some insurance cover NOW


Apply for a Welcome Home Loan

Administered by Housing New Zealand, this scheme currently allows individuals to borrow up to a specific value with little or no deposit. Not all Banks are involved with this scheme so we do recommend you talk to us first. 

Recent changes that come into effect on 1 October 2013 for this scheme are mainly centered around the amount able to be borrowed and the change in deposit requirements. 

The basic criteria are:

  • You must be New Zealand Citizens or Permanent New Zealand Residents (holding a 'Permanent Resident Visa').
  • The Welcome Home Loan is for owner-occupied properties only. It is not for rental properties.
  • Borrowers must not own any other property.
  • Borrowers may need to pay fees such as an application fee and a Lenders Mortgage Insurance premium fee. But in most cases these can be built into the home loan. Talk to your participating lender to see what fees apply.

House price caps as of 1 October 2013 are:

·        Auckland's house pricecap - $485,000

·        Wellington City andQueenstown Lakes' house price cap - $425,000

·        Christchurch City andSelwyn District's house price cap - $400,000

·        House price cap forThames/Coromandel, Waimakariri, Hamilton City, Western Bay of Plenty, Hutt City(Lower Hutt), Upper Hutt, Kapiti Coast, Tasman/Nelson, Tauranga City andPorirua City will be $350,000

·        For the rest of NewZealand the house price cap will be $300,000.

Applicants willneed to have a deposit that is 10 percent or more of the purchase price. Previously this had been set at 0% forborrowers under $200,000. However the belief that an effort should be requiredin some form of savings has seen the requirement of a deposit.  However this can be gifted.

And finally there are Income caps

These are now $80,000for 1 buyer and $120,000 for two or more buyers.

Designed to provide an avenue for home ownership for low income earners this may be an opportunity for you to consider – but do please talk to us as not all mainstream lenders are involved with this scheme.


AGE IS NOT A FACTOR

After talking with a number of people we have discovered that there is some hesitancy in relation to accessing schemes such as KiwiSaver™ and the Welcome Home Loan ™ packages for home lending.

Many people think that these schemes are just for the young – THEY AREN’T – in fact as our headline states –AGE IS NOT A FACTOR!

So here are the facts:

KiwiSaver™

ANYONE can access their KiwiSaver™ to use the majority of funds as a deposit for their first home.  Subject to the conditions below:

KiwiSaverfirst-home savings withdrawal can be used to: -

  • Buy a home.
  • Buy land to build a home on (it cannot be used to assist with building costs if you already own land).
  • Purchase a property for personal occupation only – NOT for rental.

 After a minimum of three years membership ina KiwiSaver™ scheme, you may be able to withdraw:

  • your personal contributions
  • your employer contributions
  • all returns on those contributions (interest etc)
What you can’t take out is the Government annual subsidy (approx$520p/a) or the initial $1000 kick start.

Wayne’s Words of Wisdom

Firstly, if you already have a mortgage or a decent amount of equity in your home there is nothing to worry about. If you are about to buy, sell or even look to top up your mortgage then you need to be aware of the changes.

In order to slow the rate of housing-related credit, the Reserve Bank has stepped in by restricting banks abilities to lend at high loan-to-value ratio levels.  Banks will now be required to restrict low deposit lending considerably,  being limited to a maximum 10% of their new lending by dollar amount on low deposit loans– that is any lending over 80% of the property values.  Lending at these levels  will still happen, but banks will be more circumspect as to who they give low deposit loans to.

Basically for the majority of New Zealand borrowers, you will require at least 20% of the required cost as a deposit.

So what do I think – well to befrank I think it’s a broad brush approach that is only going to ‘hurt’ andaffect the middle New Zealand borrower and first home buyers.  Currently first home buyers and low incomeearners can access KiwiSaver ™ and the Welcome Home Loan™ schemes (featured onour fact page overleaf).

No one can argue that areas suchas Auckland, and potentially Christchurch, are seeing inflated house prices - andthis needs to be addressed. However creating a situation whereby the entirecountry pays for the problems in specific areas is simply not the answer, northe solution, in my view.

In my opinion, a better and morepalatable option would be to allow a 5% minimum deposit for any property purchaseunder $500,000 and for any property purchased over $500,000  a 20% deposit would be required.   This is simple and addresses the issue athand.  What’s more it is easy toadminister as opposed to the cumbersome administrative nightmare of policingthe adopted policy. 

It appears the Reserve Bank did not favour such an idea as it targeted specific geographical areas! That’s like saying – there is a wart on the end of your nose so we will cut off your head because we don’t want the nose to feel like it’s being picked on!

However frustrating it may be,these are the new regulations and we have to live with them. But rest assuredwe are working even harder for our clients.   Now more than ever it makes sense to use ourservices as your mortgage adviser – remember we have access to most lenders inthe market.

And like anything in life –there’s always a solution.  With other lenders besides mainstream banks NOT being regulated in this fashion, there are still opportunities to purchase a home with a low deposit.

Sometimes it’s not a case of who you know, but what you know  - so give us a call to discuss how these changes could impact your next borrowing decision.

 


Sweeping with Broad Brushes


With recent announcements from the Reserve Bank, and the questions that are being asked of us, we felt it was necessary to bring you up to date with the changes in the banking sector –especially around the amount of deposit now required of you in order to buy a property.

So what does it mean? For some, it means being turned down by the bank, compared with  a few weeks ago when they would have welcomed your business!!!  It may also mean that right now there are longer waiting times for bank loans to be accepted, and missing your dream property could very well be a reality!

However, we are nothing if not optimists, and believe that there is always a solution. And that’s our strength– we often have the answer and just need to be asked the question. So if home ownership is a discussion you or anyone you know is having, then call us today so we can start helping! 


4 Tips to Better Insurance

Do you remember when banks just took deposits and loaned money. Now they offer a wide range of services, from paying your bills to selling you insurance.

And it’s the last one that concerns me considerably. Not because I don’t believe they shouldn’t do it – diversifying is sensible. My concern centres on claims and long term relationships. Everyone has heard of situations where someone had an insurance policy that they thought covered them for something only to discover at claim time they weren’t.

When you purchase a property and take out a mortgage, a bank will ask if you have personal insurance cover. They need to know that should something happen to you, that they will be able to recover the loan. This is sensible of course, they have a vested interest.

The issue here is, are you getting best advice? Are you getting the best the market can offer? Remember the banks deal with one insurance provider only. How do you know you are getting the best deal? Who do you talk to when you need to make a claim? Who will help you to get your claim processed and paid quickly?”

Arranging insurance cover isn’t a difficult process. Making sure you have the appropriate cover isn’t so easy. If you are not getting great advice, and you accept what is offered without question when you’re in a hurry at the bank, you could be making the worst decision of your financial life if you get it wrong.

So here are some tips when you are considering your insurance situation:

  1. Deal with an adviser who has access to multiple insurance providers. One size does not fit all!
  2. Make sure you understand what you are buying and why. If you don’t understand the product, have your adviser explain it. Almost as bad as having no cover is not knowing you may have a legitimate claim.
  3. Review your policies and update as your family, business and their needs change. This should be done on an annual basis. Policy anniversary time is ideal. Never be afraid to call your adviser for a chat.
  4. Consider your insurance as a fixed and nonnegotiable expense in the same way you would your mortgage or car payment. It’s easy to consider personal risk insurance as a luxury rather than a need, when in reality that is definitely not the case.

If you would like to look at your insurance options, give me a call and let’s have a coffee. I will do the shopping around for you and then present you with recommendations appropriate to your individual needs.

So contact me – this is where I can help!

3 Tips to Choose the Right Interest Rate

Now there is always discussion around Interest Rates – in fact it seems to be, for many, the single most important criteria that is considered when choosing a lender.

Generally one of the first questions I am asked when I meet with someone to discuss lending is – “Where do you see interest rates going?”

That is not always easy to predict, however I do believe that Interest rates will remain lower for longer. Of course things change, and I could be wrong, although I’d like to think that some of the volatility has been removed from the marketplace. But when it comes to securing finance for a property there are 3 tips that will hold you in good stead:

  1. IGNORE THE INTEREST RATE that the banks promote. This may sound illogical as typically this is the very first item to consider- HOWEVER - what a bank offers direct to you and what we as Advisers can often secure may in fact save you THOUSANDS of dollars. TIP #1 – If you want to save money and get an interest rate that is more than just ‘competitive’, TALK TO US FIRST.
  2. IGNORE the temptation . Whilst rewards and gifts may seem very tempting and just what you want, the reality may mean an interest rate that actually ADDS to the amount you will pay in the long term. So while an IPAD may be just what Santa forgot, we suggest that you IGNORE the temptation and just buy one with the money you can be saving from a lower interest rate. TIP #2 – If paying off the mortgage faster is important to you, TALK TO US FIRST.
  3. TAKE CONTROL. As a consumer you have a great deal of power. More often than not, most of us simply don’t realise it at the time. By engaging us to act as your ‘Pseudo Bank Manager’, you will find yourself with a great deal more control as we act on your behalf. It is our job to negotiate, advocate and manage the lending process, removing you from some of those possibly challenging discussions. Tip #3 – If you are keen to avoid unnecessary stress,TALK TO US FIRST.

A recent example of just how our service is of real value has highlighted when a client on re-fixing their home loan went directly to the bank. They got the off-the-shelf interest rate. It wasn’t until I caught up with them that they mentioned it. There were some changes in the couple’s personal situation which meant the lender requested a great deal of additional information. Even as a client of the lender for over 10 years, there was no special offer or reward for their business. Loyalty means something – well it does in my book - and I believe that loyalty should always be acknowledged. If not… well as the consumer you have control!

Finally the biggest TIP I can offer as someone that has been in the industry for more than most, is to pick up the phone, organize a coffee with me and let’s see what we can secure for you. 

Refixing / New Home / Interest Rate Changes / Additional Lending / Investment Property Funding 

Call anytime – I’m here to help!

Get in touch

 

Our advice comes supported by many years in the mortgage and insurance industries. So contact us today!

0800 800 333  wayne.oliver@sharenz.com
 sarah-jane.reay@sharenz.com

07 856 2960  
07 856 2962    

This website is for general information purposes only. We encourage you to
call us or email us in confidence with specific questions.
 

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