Mortgage Matters with Mortgage Studio

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Our Five Top Mortgage Tips

This month, we thought we would share our five top tips, which are based on the most common questions and enquiries we receive from new and existing clients:

1. If you have a fixed-rate loan and money sitting in a savings account, it could be worth contacting your bank or Mortgage Adviser to determine if you could benefit from repaying part or all of the fixed-rate loan. Your bank will provide a no-obligation break cost so you can determine if it’s worth doing. If this situation is likely to happen again, it might be timely to review your loan set-up, as better loan set-up options might be available.

2. The way in which your bank accounts are set-up can make a considerable difference to how long it takes to repay mortgage debt and how much interest you pay. Many (probably most) people do not realise the options available to them, and how certain options can work better than others.

3. Banks continue to lend to prospective home buyers with deposits of less than 20%, with and without parental assistance. The rules and terms are more restrictive, but it is still happening.

4. Refinancing a Student Loan might not sound like a very good idea, but it can be beneficial when you have equity in your home or cash deposits and require additional cashflow. It is important to take advice on this, to ensure it is the best option for you before taking that step.

5. Don’t be fooled by the fortnightly repayment myth (that fortnightly repayments will repay a loan faster than monthly repayments). If your repayments are based on a particular loan term (eg 25 years) there is no discernible difference in the total interest cost whether your repayments are monthly or fortnightly. However, a benefit would accrue if you were to halve the required monthly repayment and pay fortnightly, as you are actually overpaying your loan.

If you would like to discuss the above tips in more detail, or if you have any questions whatsoever regarding your mortgage, or buying or selling a home, give us a call – we would love to help.

Wayne Lawrie Mortgage Studio

Wayne Lawrie is a Registered Financial Adviser specialising in mortgages. Based locally, he provides FREE advice to both sellers and buyers. Give Wayne a call on 09 428 2223 to discuss your situation or to request a copy of his disclosure statement email enquiries@mortgagestudio.co.nz

Max Zhang

LICENSED SALESPERSON 房产中介

M 021 521 888 英语、国语

E max.zhang@mikepero.com www.mikepero.com

Mike Pero Real Estate Ltd, Silverdale O ice Cnr Millwater Parkway & Bankside Road, Millwater Licensed REAA (2008)

Looking to buy your first or next home? Wondering whether you can do better than your current mortgage? Advice from a specialist Mortgage Adviser could save you time and money. Best of all, it’s free!

Contact the Mortgage Studio team today. We’re here to help you.

Wayne Lawrie Morgan Moore Jo Hook