The biggest question most homeowners will face this year is whether to choose a fixed-rate or variable-rate loan.
Many people borrow money to buy investment properties, aiming to benefit from rising property values or to earn rental income.
There are no regulations stating what information mortgage brokers have to tell you – it’s up to you to find out about their services and their background. Here are five questions you could ask: How many lenders do you work with, and who are they?
It is important that you know just what you can and can’t do with a loan, and what the costs are, before you sign up. What fees do you charge?
The price for a home loan and all the features it offers comes in the form of interest and fees. Some lenders provide details of these in their brochures, and many give current charges on their websites. These are the specific costs you need to check:
Once your mortgage is in place, there are steps you can take to make sure it is always working for you as well as it can. In this section, you'll find information about:
The ideal mortgage contract has benefits for both sides: you get a loan to match your needs at a competitive price, and the lender gets some long-term business. Look at it as a deal where you can negotiate. Knowing what you want
Alongside the more popular lending types there are also some special types of lending for people in different situations and stages of life. 'Low doc' or 'No doc' mortgages Bridging finance and second mortgages Equity release
When you're choosing a home loan, there are two big decisions you need to make:
You've probably got a rough idea of the sort of home you'd like, and how much you'll have to borrow to buy it. But will a lender actually lend you this amount? That depends chiefly on two things:
There are dozens of companies providing home loans. Choose a lender on the key areas of interest rates, fees and services. Don't be swayed by prize draws or the like. However low fees and a contribution to your legal costs are well worth taking advantage of.
You’ll probably look at many places before you find the home you want to buy. It’s a good idea to be just as careful over choosing your mortgage, since the repayments over time (interest and principal), could add up to a lot more than the cost of the home.
The offers are already being made to people facing big mortgage interest rises. "If your lender won't renegotiate, we've got deals that will lower your payments," they say. Are these deals any good?
The term "mortgage diversion" will be on more and more lips as KiwiSaver gains wider adoption.
The volume of house sales is slowing. Houses are taking longer to sell. And some apartment prices are falling. What if house prices are next to fall? That would clearly be great news for those struggling to buy their first home.
Reserve Bank Governor Alan Bollard has been telling us off because we keep raising our mortgage debt. But, from the individual's point of view, how bad is that? It depends on why we borrow. New Zealanders' mortgage debt rose a rapid 16 per cent in the year ending September.
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