How to improve your mortgage situation.

Is your current bank offering you the best interest rates or cash contributions?

People are using mortgage brokers more than ever before and for some very good reasons. Whether it’s for a refinance of your existing home loan, a new purchase or looking for a way to get debt free faster, a mortgage broker can save you time and money by shopping around for the best deals – and at no cost to you. Currently interest rates are at record lows and could possibly fall further – but are you getting the benefits? 

Also we always suggest you need a simple plan to pay off debt at a reasonable rate, achieve your personal goals and protect your lifestyle. In the business world, a study in 2010 showed that those who completed business plans were nearly twice as likely to successfully grow their businesses or obtain capital as those who didn’t write a plan http://smallbiztrends.com/2010/06/business-plan-success-twice-as-likely.html. 

The choice at the end of the day financially is either do it all yourself or seek help from a specialist broker who can help you plan and add value. Our services to you in this regard are completely free and no-obligation. This means that you have absolutely nothing to lose! 

What we can do for you:

• Re-finance your mortgage at terms that work better for your current situation.
• Help build a plan to pay off your mortgage quicker and achieve your financial goals.
• Obtain a new home loan at the best possible terms.
• Suggest debt reduction strategies and get the burden of debt off your back.

Need help with your mortgage? Let us know.

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Finance News Roundup 10/9/2014

1. People prioritising risk to their possessions over risk to themselves when it comes to purchasing insurance. - Insurance Business Online

2. Is Term Life Insurance for seniors over 60 a smart buy? - Evan Carmichael

3. Britain faces financial storm as world prepares for possible Scotland breakaway. - Daily Telegraph

4. Australia and New Zealand are the world's greenest real estate markets - Property Observer

5. Crashes caused by uninsured drivers costing the country millions. - The Northern Advocate

6. Peter Lyons: Is New Zealand's prosperity real? - NZ Herald

7. How to Afford an Investment Property - Even when you can't. - Your Investment Property Mag AU

Is Home Ownership Out Of Reach?

As New Zealanders, we're a smart country. When we look ahead to the future, we know that one of the soundest ways to protect our wealth and secure our future (other than a sound insurance plan!) is property ownership. First home buyers long to be on the property ladder, but they see a booming market and believe that they have been priced right out of it. Potential investors may already have a house of their own but feel likewise about the prospects of getting another to use as the investment property they really want.

It's easy to see why we see things this way. There is a shortage of housing in the main centres of the country, especially Auckland, with a shortage of over 100,000 homes forecast for the future as Auckland's population grows. There is recovering economic growth in this country as well, and coupled with the shortage, house prices continue to boom. The median house price in 2013 was $505,000, a huge jump of 11.6% from $453,000 the year before. In contrast to this rise, the median take home income of New Zealanders only increased 2.7% over the same period. For many average Kiwis, the image of home ownership is like standing at the bottom of Mt Everest with no climbing equipment and then having to watch as the mountain itself gets bigger before their eyes every day!

Owning a home can feel like climbing a mountain - but it doesn't have to be.

Our mortgage specialist Jonathan Parsons understands this. He encounters this presumption every day. And he takes pride in dispelling it, and showing people how they can have that first home or investment property, and how the mountain might not be as high as it looks on first glance. 

Many more people can afford property than they think. This is the first and most crucial point.We can show you the best, proven and most efficient ways for you to save for that deposit to get you into your first home. We guarantee you that with careful planning, diligence and our specialised help, we can help you get to the top of that mountain. You can get there. Don’t give up. We’ll show you how.

Once that's out of the way, and the possibility of home ownership becomes real, our work you won't stop there. Jonathan will offer the following ongoing services to make sure you keep climbing that mountain, all the way to the peak.

- Securing bank approval at the best possible rates on the marketplace, taking the stress out of your hands and getting the best results.

- The best deals on insurance to protect your property when you have it. All without the hassle of having to navigate a confusing marketplace yourself.

- NO FEES. Jonathan gets paid by the mortgage providers, not by you, and his service won't leave you out of pocket!

- Continuous contact with legal and accounting professionals to review your case and ensure you are maximising your investment and your protection.

- Expert and professional structuring of your mortgage to meet your personal needs and ensure it can be paid off in the quickest possible time.

Getting into the housing market as quickly as possible means the greatest possible returns on your investment. Property has grown by an average of 9.2% per annum over the last 40 years. Inflation growth has averaged 6.7%, thus, property has been proven to beat inflation and grow in value. We're a smart country. We know this. Many just didn't know that they could be a part of it too. Until now.

Make an enquiry with Jonathan today.

Read more about Jonathan at his official bio and details page.

Visit our official website for more information.

Insurance/Investment News of the Week

1. Health Insurers Target Young New Zealanders. - NZ Herald

2. The Wild World of Insurance in Saudi Arabia (Interesting read!) - Arab News

3. Opinion: EQC and Insurance Sector Deserves Fair Go - Stuff.co.nz

4. House Prices Soar Again - Interest.co.nz

5. Too many Kiwis blowing Kiwisaver Payouts - Good Returns

Need Help With Your Finances? All questions welcome: enquiry@sprattfinancial.co.nz

Breaking News of the Week

1. Caution urged over 100% home loan offers. - NZ Herald

2. How to better manage your home loan. - Bank Bazaar

3. Humor: "My car must be insured, I have a MEERKAT toy at home" - The Mirror UK

4. Southern Cross and Travel Insurance Direct win top honours in travel insurance survey. - NZ Herald

5. What we can learn as investors from three epic investment failures. - Good Returns

6. Apathy a major obstacle to getting people insured. -Voxy.co.nz

Who has the Best Home Loan?

When home buyers make the decision to buy a home, one of the first and foremost things on their minds, save for those few fortunate enough to have saved enough to buy outright, is 'who has the best home loans'? Factors such as interest rates, lending conditions and reliability all play a major role in answering that question, but with over 50 established lending sources on the market place including banks, credit unions and finance companies, finding out can involve a lot of intensive research, meetings and questioning; certainly an exhaustive process.

To begin with, there is a great resource, courtesy of our friends at Good Returns, which provides a continually updated comparison of interest rates for all the major lenders, all in one place. It also shows a history of changes and can be filtered by type of lender (Major banks, minor banks and non bank lenders) and can also show changes from the previous day, one week, two weeks, four weeks, three months or six months. There is also a feature where graphs can be plotted showing visually a comparison between lenders with changes over time.

The latest home loan rates can be found here. In terms of interest rates, this is a great resource to use.

Obviously personal circumstances play a role in what you're looking for out of a home loan. Knowing this, simply looking at interest rates and watching television ads extolling the virtues of certain institutions can be a tad misleading, as they are generalised to appeal to a wider audience and not you specifically. Plus, some calculations can be complicated things, and it can be confusing as to which loan will really pay off for you over the entire course of your loan repayments 5 years or more down the track. Each of the major banks has their own calculator applications designed to answer these questions, but again, comparing them all and taking into account all of the minutiae can be a daunting task, for which there is no simple table or application to complete.

If you want to take some of the legwork out of your home loan research, Mortgage brokers can be a helpful resource. They can either secure a loan at the best possible conditions for you specifically or determine which loan is best based on all the factors you need taken into account. A small difference in percentile points here or some misunderstood fine print there and you could end up paying hundreds or thousands more than you could have been if you covered all your bases from the start. Auckland in particular has experienced a rapid increase in the cost of housing, making it even more vital that you don't waste money when repaying your mortgage.

Overall, we hope the resources online help, but if you require more information or think you could benefit by having your bases covered when it comes to your home loans, make a free, no obligation enquiry to our lending department anytime at enquiry@sprattfinancial.co.nz

Visit our official website for more information.

View the contact details and bio of Jonathan Parsons, our mortgage specialist.