NZHL Tauranga business owner, David Hill, shares some tips on making the most of record low interest rates and chasing financial freedom faster.
Think about the structure of your loan
Great news interest rates are at record lows with unheard of sub 3% options available. But low interest rates in isolation won’t optimise the life of your home loan.
That’s where having a smart structure and effective planning of your finances comes in.
Breaking off a portion of your home loan into a flexi loan or revolving credit facility could be an option, to put as much money as possible into your home loan and lower you daily interest costs. You could then fix the rest of your home loan so you can take advantage of the lower interest.
I’ve got clients who have shaved years and years off their mortgage by simply working to a smarter structure.
Make a financial plan
The key really 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.
From there you can use your surplus to reduce the interest you pay on your loan – which links back to having that smart home loan structure.
Get the right advice
At NZHL we’re all about financial freedom faster for Kiwi’s. In fact NZHL clients are currently saving more than *$35 million per year in interest costs.
We’re 100% NZ owned, 100% passionately kiwi (that’s one of our values) and 100% here to help with personalised service.
I’ve worked with hundreds of people in our region, including first home buyers and experienced investors alike, to reduce their loan terms and get them on a path to financial freedom.
*Figure based on actual balances of current clients at the current NZHL floating rate and correct as at 31/03/2020