by Paul McBeth
Pay all fees up-front if possible, be your own broker and split your loan.
Those are just some of the suggestions in an online article by mortgage bankers Cairns Lockie, which gives 20 pointers to saving money on your mortgage.
Cairns Lockie also suggests developing a relationship with someone in the institution you’re borrowing from: "If you build a good relationship, it will help you when financing your next property". It recommends checking your mortgage statements when you receive them as lenders can make mistakes.
Other advice is to beware of lenders bearing gifts and of lower introductory interest rates. "We call these offers bait and trap deals," Cairns Lockie says. "They should generally be avoided, or at least carefully investigated to ensure there are no hidden costs or pitfalls."
"You may end up paying a higher interest rate once the honeymoon has ended, or if you wish to get out of them there may be significant penalties."
Cairns Lockie’s 20 pointers are on the company’s website at www.emortgage.co.nz. Also see previous Good Returns articles on this topic: