If you haven’t worked with a financial advisor before then you may have some questions.
These answers provide a general overview, but it’s always best to consult directly with a mortgage broker or financial advisor for specific advice tailored to your situation.
If your question isn’t here then contact us for a chat.
A fixed-rate mortgage has an interest rate that stays the same for a set period, usually between 1 and 5 years. This means your payments remain consistent, which can help with budgeting.
A variable-rate mortgage has an interest rate that can fluctuate based on the market or a base rate set by the lender.
While variable rates can start lower than fixed rates, they can increase, which may lead to higher payments.
The amount you can borrow depends on several factors, including your income, credit score, employment history, existing debts, and the size of your deposit. Lenders use these factors to assess your ability to repay the loan.
Typically, lenders will allow you to borrow up to 4-5 times your annual income, but this can vary.
A pre-approval is a conditional approval from a lender for a certain loan amount, based on your financial situation. Getting pre-approved can give you a better idea of how much you can afford to borrow and shows sellers that you're a serious buyer.
It can also speed up the mortgage process once you find a property.
The costs of getting a mortgage can include, legal fees, valuation fees, and possibly application fees.
Additionally, there might be fees for insurance and early repayment if you decide to pay off your mortgage early. It's important to ask your broker for a breakdown of all potential costs.
The deposit required can vary depending on the lender and your financial situation. Generally, you will need at least a 10% deposit of the property’s purchase price, but having a 20% deposit or more can provide access to better interest rates and reduce the need for lender’s mortgage insurance (LMI).
Our services are free as we are paid by the product provider. Occasionally if your loan will require more time or expertise than most mortgages then we may negotiate an additional fee before we begin working together.
Yes, you can pay off your mortgage early, but some lenders may charge an early repayment fee or penalty, especially if you have a fixed-rate mortgage. It's important to check the terms of your loan to understand any fees associated with early repayment.
Refinancing involves replacing your existing mortgage with a new one, typically with better terms or a lower interest rate. You should consider refinancing if it can save you money on interest, reduce your monthly payments, or allow you to access the equity in your home. However, it's important to consider any fees associated with refinancing.
Eligibility requirements can vary between lenders, but generally, you will need a stable income, a good credit history, a deposit, and proof of savings. Lenders will also consider your employment history, current debts, and living expenses to determine your ability to repay the mortgage.
Mortgage and Insurance New Zealand does have an office you can visit or alternatively we can come and visit in your home. Andre is available to talk to you when you are free including outside normal office hours. This means you don’t need to take time off work or find a babysitter to organise your home loan or insurance.
The main types of personal insurance available in New Zealand include:
Income protection insurance typically covers a percentage of your regular income (usually 75%) if you are unable to work due to illness or injury. It provides ongoing payments to help cover your living expenses while you recover. The policy terms, including waiting periods and benefit periods, can vary, so it's important to choose a policy that suits your needs.
ACC provides no-fault insurance coverage for injuries caused by accidents in New Zealand, covering medical treatments, rehabilitation, and compensation for lost wages. Health insurance, on the other hand, covers non-accident-related medical expenses, such as surgeries, specialist visits, and private hospital care. Health insurance can also offer faster access to medical services and a wider range of treatment options.
It is possible to get personal insurance with pre-existing conditions, but the terms and conditions may vary depending on the insurer and the severity of the condition. Some insurers may exclude coverage for pre-existing conditions, charge higher premiums, or impose waiting periods. It’s important to disclose all pre-existing conditions when applying for insurance to avoid any issues with claims in the future.
To choose the right personal insurance policy, consider your financial situation, existing coverage, family needs, and future goals. Compare policies from different insurers, paying attention to the coverage options, exclusions, premiums, and benefits. It’s often helpful to consult with a financial advisor or insurance broker who can provide tailored advice based on your unique circumstances.
Personal insurance helps protect you and your family from financial hardship in the event of unexpected life events, such as death, illness, injury, or disability. It ensures you have financial support to cover living expenses, medical costs, and other obligations when you're unable to work or when a family member passes away.
The amount of life insurance you need depends on several factors, including your income, debts, number of dependents, and future financial goals. A common approach is to calculate enough coverage to pay off any debts (like a mortgage), replace your income for a certain number of years, and cover any future expenses such as education costs for your children. Consulting with a financial advisor can help you determine the right amount for your situation.
Trauma insurance provides a lump sum payment if you are diagnosed with a specified serious illness or condition, such as cancer, heart attack, or stroke. This payment can be used to cover medical expenses, make necessary lifestyle changes, or provide financial support during recovery. It’s particularly useful for covering costs that may not be fully covered by health insurance or ACC.
TPD insurance provides a lump sum payment if you become permanently disabled and are unable to work in any occupation for which you are reasonably suited by education, training, or experience. This payment can help cover living expenses, medical costs, and any necessary home modifications or care required due to your disability.
If you need to make an insurance claim, contact your insurer as soon as possible. They will guide you through the claims process, which typically involves providing documentation such as medical reports, proof of income, or other relevant information. It's important to understand the terms and conditions of your policy and keep records of all communication with your insurer.
If you need to know anything else just send us an email or call. Andre is happy to answer all your questions
TAUREWA KAINGA me
te INIHUA o AOTEAROA
Financial Template Kit by Baliniz
Copyright © 2020. All rights reserved.
