Reducing the term of your home loan and achieving financial freedom, faster doesn’t have to be too good to be true. In fact, did you know that it’s not unusual for NZHL clients to pay of their mortgages 10 years sooner than planned?
The magic lies in the structure you use, the personalised support you receive, and of course your ability to stick to the programme!
Let’s break it down:
1. Your mortgage structure matters
Put simply there are gains to be made by structuring your NZ home loan differently, and in a way that positively makes use of the money you have available to you on a daily basis.
At NZHL we call it our smart home loan structure, and while we tailor it to suit the individual, essentially, it’s all about using your income and savings to offset the interest you pay, which in the long term can reduce the life of your loan. Sometimes considerably.
And remember that your mortgage structure should always be tailored to meet your needs and goals, not your providers!
2. Support helps
Many people perform better with the help of a coach or some form of personalised support, be that in the gym or in other life functions, and it’s no different when it comes to money matters.
Firstly, your NZHL consultant will work with you to tailor your new mortgage structure to suit your needs, and then we will provide on-going support and guidance for the life of your home loan. Yes, that means you get regular reviews and check-ins to help you stay on track.
In our view, no New Zealand home loan should be a matter of set and forget!
3. Stick at it
You can have a smart home loan structure tailored to meet your needs and a diligent NZHL consultant, but if you blow your budget every week and don’t stick to your plan, it ain’t going to work!
NZHL believes in putting clients in control of their financial freedom. We love enabling you on that journey but ultimately, we also know that you have to commit, plan and review to get ahead. The good news is that NZHL also has monitoring tools (DebtNav) to help. The other good news is that we find that when our clients use our monitoring tools, they are more likely to stick at it, and stay on track!
Below are some extra tips and tricks to chase down that home loan:
• It’s not the rate you pay but the rate you pay it off – low interest rates are helpful but it’s the rate you pay off your loan that can make a real difference (which is where your smart home loan structure comes in).
• Increase your payments – if you can afford it, commit to increasing your payments, even by a small amount – this will help reduce your principle and the life of your loan.
• Lump-sum payments – channel those end-of year bonuses, inheritance amounts, or that bit of extra income from your side-hustle.
• Don’t reduce your payments if interest rates go down – this is a goodie because it will often not impact your day to day at all, but will make a difference to your mortgage in the long term.
A Home Loan provider that puts you first
At NZHL, we deliver great home loans tailored to your personal requirements, along with a dedicated consultant whose goal is to coach you to financial freedom, faster. We’ll monitor your progress and inspire you to reach your goals. Contact NZHL