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A house is often the biggest purchase of our lives, and a mortgage (also called a home loan) is typically our biggest financial commitment. Choosing the right home loan and repaying it quickly can save thousands of dollars – and free us up to achieve other goals faster!
Choosing the lowest-cost loan and repaying it quickly can save thousands of dollars.
For most of us, it’s a case of going out and looking at lots of different properties before finding the right home. It pays to be just as careful when choosing a home loan. The idea is to:
You can get a mortgage directly from a bank or through a mortgage broker. Both have their advantages and disadvantages.
Home loans are also available from ‘non-bank lenders’ such as building societies, finance and insurance companies, trustee companies and credit unions.
‘Non-conforming lenders’ are an option for people who can’t get a bank loan, because of a bad credit history or lack of proof of income. These lenders usually only accept applications through mortgage brokers.
Here are some questions for lenders to have on hand when meeting with a bank.
Brokers deal with a number of lenders, so they can save you time shopping around.
How much you can borrow depends on what you can afford to repay on your current income, and how much a lender will lend against the value of the property you want to buy. Not sure how to calculate mortgage repayments? Try our new mortgage repayment calculator.
There are many types of mortgage, each with its own interest rate, fees and degree of flexibility. All these things affect how much the loan costs and when it will be paid off.
Once our mortgage is in place, there are steps we can take to make sure it keeps working for us.
1 May, 2018
You may have heard the mortgage rule of thumb a friend mentioned the other day: “With a mortgage, you’re going to pay twice the cost of the house.
28 Feb, 2018
Sometimes you need to experiment to see how things work.
1 Nov, 2017
We were headed for the chip shop the second night in a row. I could see it coming. The kids were keen.
1 Aug, 2017
What if you could pay off your mortgage sooner than planned? Revolving mortgages are a valid option here in New Zealand - use them the right way and you could...
27 Mar, 2017
It's easy to find details on using KiwiSaver for a first home, but they don't really say whether it's a good idea or not.
23 Nov, 2015
If there’s one gift we give ourselves this Christmas, let’s make it one that could make the most difference – taking steps to be debt-free sooner.