Mortgage & Finance

Giving you the tools to be financially free

How do I pay off my mortgage quicker?

There are lots of different mortgage products in the market place, and each is designed to help you repay your mortgage as quickly s possible. Some products offer certainty in interest rate, some products allow you to make lump sums without penalty, and some go as far as allowing you to offset the interest charged on your mortgage with every dollar you earn. When structuring your mortgage it is really important you talk to an adviser on the best products to suit your repayment ability.

As soon as you pay $1.00 above the minimum repayment that $1.00 comes straight off the principle loan you owe. Use the calculator below to see how quickly you can repay your loan, as placing an extra $50.00 a week on your mortgage above the minimum can save you thousands in interest and years of paying a mortgage!

How much deposit do I need?

Deposit is always the deterrent for many looking to purchase, as they seem to think they do not have enough. New Zealand banks currently have the capacity to lend 90% finance for owner occupied purchase - that means you only need a 10% deposit!

If you can however manage to provide a 20% deposit you will gain a better deal from the banks currently. You will receive market leading interest rates, cash/ legal contributions, and overall better mortgage products.

There are different fee’s associated with different deposits and each bank is different. So how do you know you are going with the right one? That is where advisers like us can help!

Affinity assess your application and deposit and take you to the lender who can accommodate your needs. We also help you define your deposit and know all the ticks of the trade in regards to KiwiSaver eligibilities and HomeStart grant withdrawals. We help our clients with these forms and make KiwiSaver for your home purchase stress free.

How much can I afford?

Your mortgage needs to be affordable. At Affinity we work through different interest rate scenarios in the future to ensure your mortgage is always at a level where if interest rates increased you can afford it. Banks assess their loans differently, and some have the ability to commit more of a client’s income towards a mortgage repayment. This means the chance of higher loan approval if with the right bank.

Give us a call to discuss your mortgage affordability, but for now have a look at what the mortgage you want would likely cost

I want to buy another property, but how?

Buying a second home or buying an investment property is very similar to a first home. You need a deposit and you need to be able to afford the new mortgage. However with the next purchase we can use the equity within your current home to help with the deposit side of things.

Currently in the lending market a 40% deposit is required for all investment purchases. This may not sound as bad as it seems however if you have good equity in your current home. We can use a combination of your existing assets and savings to get that next rental property or holiday home.

It is all about crunching the figures and that’s what we do best!

Fix or Float, I don’t know?

The advice to fix or float is always a tricky one as it is hard to know what the interest rates are going to do in the future. Fixed loans and floating loans each have unique benefits, which should be considered when deciding:

Fixed:

  • Guaranteed rate for a set period of time
  • Security
  • No fluctuation in interest

Floating:

  • The ability to increase repayments, decrease repayments, and lump sum without penalty
  • The ability to offset your mortgage interest with savings

Both products are great so why not encompass bits of both in your loan structure? Give us a call and we can show you how.