tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, May 17th, 6:37PM

Mortgages

rss
Latest Headlines

Now is the time to contact a mortgage adviser

Homeowners overwhelmed with the cost of living, rising interest rates and recent weather damage are turning to mortgage advisers for advice.

Wednesday, March 29th 2023, 12:54PM

by Sally Lindsay

More than 80% of homeowners contacting The Lending Team, for example, and other advisers are on 2-4% fixed term interest rates. With renewal dates approaching, they’re likely to refix at 6-7%. On a $800k mortgage, that’s an estimated extra $400 per week or $1600 a month and for many families, this is daunting.

The Lending Team director and mortgage adviser Neville Modlin, who has 30 years’ experience in the finance industry, says the industry hasn’t seen stress like this since the GFC in 2008.

“Homeowners are more overwhelmed and on-the-edge financially than ever before. Many don’t know where to turn, but they do have options,” he says.

Qualified advice is key

“What’s really concerning is the number of people who don't know that advisers can help with the refixing process; many homeowners are unaware there are options available to help during this tough time.”

He says households don't have to wait for their current term to end to kick discussions off. “Early discussions are crucial to give homeowners time to explore all options on the table.

“For those facing hardship or lying awake worrying about meeting increasing repayments, there are things you can do.”

Mortgage restructure

An adviser can review a homeowner’s existing mortgage structure and explore what adjustments can be made to reduce repayments. Key areas for discussion include:

  • floating vs fixed rates;
  • extending the loan term;
  • interest only terms; and
  • refinancing.

Refinancing an existing loan to a new provider also gives the option to restructure.

“At first glance, interest rates are similar between the main banks, however a cash contribution offer is an attractive incentive to move,” says Modlin.

“Most banks are offering one per cent cash and some up to $25,000 – making a massive difference to homeowners. There are, however, potential costs to refinancing, so an adviser will also take those into consideration when this is discussed.”

The bank’s hardship team

Banks have dedicated hardship teams available to assist, and advisers can play an intermediary role for overwhelmed customers.

These teams are dedicated to assessing options such as a personalised repayment plan on a case-by-case basis, Modlin says.

Key advice to the worried

“Homeowners need to have an understanding of their financial position now, not later. Many spend too long on the what-ifs; however, it’s all speculation until they’ve had a mortgage adviser assess where they are. From there it's possible to come up with a workable solution,” he says.

Tags: Mortgage Advisers

« Mortgage director launches book for first-home buyersFinancial sector feedback wanted on climate related guidance »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 ▼6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 ▼6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - ▼7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 ▼7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼6.79 - -
Co-operative Bank - Owner Occ 8.40 ▼6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 ▼7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 ▼6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 7.39 7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 ▼7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - ▼6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 ▼7.74 7.29 6.59
SBS Bank Special - ▼7.14 6.69 5.99
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 ▼6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.89 7.35 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.75 6.65
Median 8.64 7.21 7.29 6.65

Last updated: 17 May 2024 9:41am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com