NZHL Tauranga business owner, David Hill, shares why now is the perfect time to review your home loan.
With interest rates on the rise and ongoing Covid uncertainties, the cost of ‘the mortgage’ now and in the future is something many homeowners are rightly reflecting on.
While low-interest rates help reduce your interest costs (for now), they won’t optimise the money you have available to you daily to shorten the life of your home loan.
At NZHL, we believe the key to financial freedom is about focusing on what you can control, like your home loan structure and spending and timely reviews, to ensure your structure is still working for you if your plans change. In essence we work with our clients to make the most of their mortgage, not the other way around!
Make a financial plan
The key is coming up with a plan that is tailored to work for your personal circumstances – it’s all about setting up your surplus and defining your goals.
Ultimately if your goal is to pay off your loan as quickly as possible, you may consider increasing your payment amounts – even $50 a week will help you get there quicker. However, if your goal is to add in an investment property or renovate your home, your advisor will need to consider the impact on your payment plan.
Remember, your mortgage structure should be tailored to meet your personal needs and goals – at NZHL, we call this our smart home loan structure. While we tailor it to suit the individual, essentially, it’s all about using your income and savings to offset the interest you pay, which can reduce the life of your loan in the long term.
Get the right advice
Now’s a very good time to consider your financial future and how NZHL can help you make the most of your mortgage. We’re 100% NZ owned, 100% passionately kiwi and are all about helping Kiwi’s achieve financial freedom, faster with personalised service.
If you are looking at switching providers, there are things to consider, like the lifecycle of your loan, break fees, and other clawbacks for benefits provided, but that’s where NZHL’s personalised service comes in – we will work this through with you.
Are you making the most of your mortgage? Come in for a chat see what’s possible for you!