Home ownership, once an integral part of the Kiwi dream, is one of the hottest topics right now. Limited property listings, relatively low interest rates and a burgeoning population are among the factors driving the bullish market and record high prices, particularly in Auckland.
\nMarry this with what\u2019s been one of the this country\u2019s most vigorous election campaigns with promises of home loan subsidies for first-time buyers, talk of capital gains tax and progressive home ownership programs.
\nOne thing we\u2019re not talking about enough is the millions spent in unnecessary home-loan interest every-day. There\u2019s often a perception that once you get a home loan, you just let it tick over. Repayments become your biggest bill,and a call to your bank happens only if something goes wrong.
\nHome owners need to regularly reassess how they structure their mortgage. Does it work for their present situation? Could they increase prepayments?
\nEvery four hours, New Zealanders pay $6M in home-loan interest. Many of us recognise the importance of long-term financial goals, but far fewer are taking critical steps to manage this.
\nWhen you look at the modeling, doing simple things like increasing your loan repayments in line with inflation every year can shred up to $156,000 of interest off a $300,000 home loan compared with a typical 30-year table loan, and it\u2019ll be paid off 11 years quicker.
\nEven changing from monthly to fortnightly repayments will have a big impact on the interest you pay. One of the best pieces of advice I got early on was to pay off more than my minimum repayments when possible. This advice helped me be better with money and to curb tendencies to spend.
\nHome loans don\u2019t have to be complicated. We need to be having conversations about structuring home loans so customers avoid unnecessary home-loan interest. What\u2019s most important is that as a Nation we\u2019re talking about it. Source: The NZ Herald \u2013 Anthony Healy, BNZ Chief Executive<\/p>\n","protected":false},"excerpt":{"rendered":"
Home ownership, once an integral part of the Kiwi dream, is one of the hottest topics right now. Limited property listings, relatively low interest rates and a burgeoning population are among the factors driving the bullish market and record high prices, particularly in Auckland. Marry this with what\u2019s been one of the this country\u2019s most […]<\/p>\n","protected":false},"author":1116,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"slim_seo":{"title":"Get Smart about Home Ownership If you have a mortgage you need to regularly reassess the way it is structured\u2026 - colinrealestate","description":"Home ownership, once an integral part of the Kiwi dream, is one of the hottest topics right now. Limited property listings, relatively low interest rates and a"},"footnotes":""},"categories":[5532],"tags":[],"class_list":["post-634","post","type-post","status-publish","format-standard","hentry","category-real-estate-2"],"_links":{"self":[{"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/users\/1116"}],"replies":[{"embeddable":true,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=634"}],"version-history":[{"count":1,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/634\/revisions"}],"predecessor-version":[{"id":636,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=\/wp\/v2\/posts\/634\/revisions\/636"}],"wp:attachment":[{"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/colinrealestate.blogtown.co.nz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}