If you currently have a mortgage with your bank – there’s a chance your loan could be structured inefficiently…

As a result, you may be unknowingly gifting them thousands of unnecessary dollars!

But before you get too worried – have a read of these bullets, and see if any of them relate to your current situation:

  • You have a mortgage on a fixed interest rate.
  • Your personal savings and income accounts are separate from your home loan account.
  • You’re currently receiving financing from your bank.
  • You want the lowest interest rates possible.


If these bullet points sum up your mortgage structure – you’re likely to be throwing money away!

Luckily, this isn’t the point in the story where I wish you luck paying off that mountainous loan for the next 30 years.

Instead I’m going to tell you about a clever strategy our clients are using to save THOUSANDS on their interest payments and wipe YEARS off their mortgage terms.

And the best part is you can do this without spending a single cent!

All it takes is a simple mortgage restructure, and you’re ready to start reaping the benefits.

If you want to skip right into taking advantage of this and other tricks to help pay your mortgage off sooner, Get in touch with one of our consultants today!

Right! So first, let’s get one thing straight…

Lower interest rates DO NOT always equal cheaper loans

Contrary to popular belief, lower interest rates are not the most important factor for cheaper loans, or loans paid off in a quicker fashion.

In fact, they can actually be a distraction from what’s MOST important..

You see, while interest rates are a big component of a home loan – how you structure your loan deserves as much – if not more, attention.

Remember that old nugget of wisdom: “Don’t worry about the things you can’t control”?

Well in this case, it’s true…

Here’s what I mean:

Interest rates are largely out of our control. We know this.

However, you can control the structure of your home loan – and how you go about paying it off.

That’s why instead of shopping for a lower interest rate, you should work to structure your mortgage in a way that optimises your payments.

But what saves you more? The way you structure your loan? Or having a lower interest rate?

The easiest was is to get in touch with one of consultants and we will show you exactly how you can pay your mortgage off sooner.

Here’s 3 different scenarios, and how much interest you pay using each of them:

*Each scenario is for a $350,000 mortgage.

  • A lower interest rate (5% instead of 6%)
  • A shorter mortgage term (25 years instead of 30 at 6%).
  • A more effective loan structure at 6%.
Lower Rate 25 Year Term Loan Structure
Mortgage Amount $350,000 $350,000 $350,000
Interest rate 5% 6% 6%
Loan term 30 years 25 years 22 years
Total interest paid $326, 395 $297,982 $263,819

As you can see, when looking at the total interest paid in the table, the scenario with the lowest interest rate is actually the most expensive mortgage to have!

Having a shorter term comes in second, and effectively structuring your mortgage repayments comes out on top – in this case, saving you over $60,000 in interest payments and cutting 8 years off your term!

Now the obvious question is: “How do I structure my home loan to get these kind of savings?”

Here’s the secret…

‘Channel’ your income and savings so that you lower your interest payments

The key to having an effective loan structure (like we used in the scenario above) is putting your savings and income into an account that is offset against your home loan account – NOT a separate unlinked account.


Because by offsetting all of your income and savings against your home loan account, you’re actually reducing your daily interest costs.

Around here we call this process: “Channeling,” and the idea is that you’re utilising income before it’s spent – to reduce interest.

For example…

Let’s assume you’re paid $5,000 a month on the 1st of every month, and your mortgage and other bills or expenses are paid on the 30th of the month.

If you owe $320,000, and you’re channelling your income against it for all but one day of the month – in effect, you’ll only be paying interest on $315,000.

Now let’s also assume you’ve been saving to upgrade your car, and you’ve saved $6,500 so far.

By offsetting this against the mortgage too you’ll only be paying interest on $308,500.

The resulting interest savings can then be used the following month to give you a compounding effect that will save you thousands of dollars over the life of your mortgage!

Here’s what the two different account structures would look like with this scenario:

Sound simple enough?

If not, check out this video for more understanding of how it all works:


You too could be one of 19,000 kiwis currently saving $39 million on their mortgages thanks to NZHL.*

To see if we’re the right fit for you, Get in touch with one of our consultants today – or contact us directly if you have any other enquiries.

Stop making your bank richer and become debt free faster!

If you’re looking for a sure-fire way to become debt free faster – channeling your income is a no-brainer.

While you can’t control the interest rates available – you CAN control the structure of your home loan, and use it in a way that benefits you.

You’re going to have a mortgage for a number of years – but by implementing this simple strategy, you can save yourself thousands of dollars in interest payments, and cut years off your term.

STOP getting distracted by the interest rates, and instead, START implementing a more effective mortgage structure.

At NZHL we believe it’s not just the rate that you pay, but it’s also the rate you pay it off that makes the biggest difference in reducing your mortgage.

As a result, our clients are currently saving over $39 million in interest they’d otherwise be paying to the bank.*

If you’d like to see if this system could work for your personal financial situation, be sure to get in contact with us.

One of our home loan advisors here in Hamilton can then meet you for a free consultation, and work out the exact calculations for your circumstances.

You too could be one of 19,000 kiwis currently saving $39 million on their mortgages thanks to NZHL*.

To see if we’re the right fit for you, Get in touch with one of our consultants today – or contact us directly if you have any other enquiries.

Get in touch with us

Help us help more kiwis pay their mortgages off faster: If you found this article valuable, please share it with one other person you think would also find it beneficial.

For more actionable ways to have your mortgage paid off in no time – download our free guide: “8 Simple Tactics You Could Use to Pay Off Your Home Loan Faster.”

Learn some of the simple mortgage strategies currently saving our clients over $39 million in interest costs*.

Download Our Free Guide

*Figure based on actual balances of current clients at the current NZHL floating rate and correct as at 30/06/2017

Useful links:

Our Contact Details:

  • Address: NZHL – Hamilton CBD, 851 Victoria Street, Hamilton, New Zealand
    Postal Address: PO Box 531, Hamilton 3204
    Phone: 07 839 9620
    Email: hamiltoncbd@nzhl.co.nz

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For more actionable ways to have your mortgage paid off quicker, download our free guide:

8 Simple Tactics Anybody Can Use to Pay Off Their Mortgage Faster.”

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