A better mortgage structure can help you to get freedom from your mortgage sooner. That’s true but better structure is not the only tool to help you get mortgage free faster. Please refer to our Mortgage Freedom Plan section for more details on how can you get mortgage free faster. Nevertheless, it is important to understand the loan types to understand what loan structure suits you best.
There are many types of loans available in NZ market. The classification of loans can be based on its “Interest” or “Repayment” features.
Interest feature based loans are:
– Fixed Rate Loan
– Floating Rate Loan
– Revolving Credit Loan
– Offset Loan
– Capped Rate Loan
Repayment feature based loans are:
– Table Loan
– Interest Only Loan
– Reducing Revolving Credit Loan
– Non-Reducing Revolving Credit Loan
– Straight Line Loan
– Offset Loan
Not every bank offers all types of loan products mentioned above and each bank tries to keep names of its loan products and its features slightly different from other banks to keep it unique.
So, tough job for you as a customer is to find out the best solution for yourself and the most common questions which can come to your mind are:
– What are the characteristics, interest rate, fees and features of each product available on the market?
– Which loan product is best according to my financial situation?
– Can I choose a mix of loan products e.g. having some portion of my loan on fixed, some portion on floating, some portion on revolving credit etc. and is that suitable for me?
– Should I keep a portion of my loan on interest only?
– Should I go for a shorter loan term of 20 or 25 years loan term 30 years loan term approved by the bank because I want to pay-off my mortgage faster?
– Does loan structure help me to pay-off my mortgage faster? If yes, what loan structure should I choose and how often I should review my loan structure?
There can be an endless list of questions in mind. We at Finance Matters help you to choose the best options according to your bank products, financial circumstances, goals, and priorities. We workshop different options with you so that you can take informed decision and achieve your goal of getting freedom from the mortgage as quickly as possible.
We also provide help to customers who have an existing mortgage and need help on restructuring their existing loans without taking any new loan. Contact our friendly team to work out your options and choose what is best suitable loan structure for you.