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  • NZ Home Loans (NZHL)

    Has anyone ever used NZ Home Loans (NZHL)?

    I have had a meeting with them and they believe they can slash our mortgage by 11 years and $154K whilst maintaining our current repayment rates.

    I am obviously interested, yet suspicious. I cant see any 'catches' which makes me think there is a hidden catch somewhere.

    What are your experiences using NZHL and what should I be wary of?

    Also, if I do go to them, will this impact me being able to use equity in my property to purchase a investment property?

    Cheers!

  • #2
    Do you pay your credit card off every month? If not, do not go with one of these loans.
    www.3888444.co.nz
    Facebook Page

    Comment


    • #3
      Offset mortgages are not new and often come with a higher interest rate.

      I've split my mortgage a small loan through BNZ's Total money and a bigger standard mortgage. The Total money one is higher interest but most months I manage around 95-100% offset so pay just a few cents. The bigger loan is fixed for two years at a discounted rate.

      Every two years when it's time to renew, I shuffle the amounts around paying a chunk off the bigger loan and setting myself a new offset target with the Total money account.

      Comment


      • #4
        Originally posted by Keys View Post
        Do you pay your credit card off every month? If not, do not go with one of these loans.
        Yea we do, I'm really intrigued, however, if I can set something up like this with my bank I am tempted to stay with the bank

        Comment


        • #5
          Originally posted by Learning View Post
          Offset mortgages are not new and often come with a higher interest rate.

          I've split my mortgage a small loan through BNZ's Total money and a bigger standard mortgage. The Total money one is higher interest but most months I manage around 95-100% offset so pay just a few cents. The bigger loan is fixed for two years at a discounted rate.

          Every two years when it's time to renew, I shuffle the amounts around paying a chunk off the bigger loan and setting myself a new offset target with the Total money account.
          And that is effectively what NZHL is? A big offset mortgage?

          Comment


          • #6
            Originally posted by BradFromNZ View Post
            And that is effectively what NZHL is? A big offset mortgage?
            That's what I gather from their intro video but I haven't actually spoken to them.

            Comment


            • #7
              what is REALLY important in non-traditional? financial products

              is the fine print

              we can't go into fine print in any depth here because there is so much of it

              and it's all different!

              but here's a story from overseas

              my sister in law was wanting to rent an apartment + needed a guarantor to get the lease

              my wife had previously been her guarantor but when the real estate company noticed my wife had a new surname

              meaning she was married

              they wanted
              me as the guarantor

              i asked what my "liability" was

              they seemed puzzled by the term, so i gave an example

              "my sister-in-law smokes, if she were to fall asleep and drop a cigarette into some highly flammable synthetic bedding

              resulting in her death, the death of many others, and the gutting of a multi-story apartment building in a very expensive city

              what would be the maximum it could cost me?"

              ......


              there was a pause and then they said, "that very rarely happens..."

              and i said

              "wrong answer!"

              so when looking at new + uncommon financially-engineered products

              i recommend your questions always be along the lines of...

              "how much am i exposed?

              what is the worst that could go wrong?

              could this in any way, shape or form

              lead to me or my loved ones being evicted onto the streets?"

              and record the questions and answers

              if they won't put them on paper

              ....

              remember

              if you have a term deposit in 1 of the big 4 banks, and they fold

              the gov. is likely to bail you out

              but if you've gone "off-grid"

              you'll probably

              end up in

              a cold, dark hole in the ground

              burning bark to cook your children's dinner


              Last edited by eri; 05-11-2019, 09:37 PM.
              have you defeated them?
              your demons

              Comment


              • #8
                Originally posted by eri View Post
                what is the worst that could go wrong? could this in any way, shape or form lead to me or my loved ones being evicted onto the streets?
                Isn't that the case of every mortgage, ever?

                Comment


                • #9
                  no

                  none of my mortgages

                  have ever included the home we live in

                  even though

                  the banks have always been willing

                  to include it
                  have you defeated them?
                  your demons

                  Comment


                  • #10
                    Fair enough. Though, most people do get mortgages on property they (or a loved one) will be living in. Not always the most astute financial decision. As when done so your "worst case" risk is applicable. I would hope most people would be aware of this.

                    Comment


                    • #11
                      Originally posted by eri View Post
                      no

                      none of my mortgages

                      have ever included the home we live in
                      (excuse the ignorance here but...) how do you get a mortgage that doesn't include the home you live in?

                      Comment


                      • #12
                        am not warning about regular bank lending terms+conditions

                        but the highly likely extra hooks in non-bank lending

                        hopefully anyone interested in one of those loans will make extra efforts to fully understand the differences and extra risks

                        am thinking of the case a few years ago where the big banks sold taranaki farmers interest rate swaps as if they were fixed rate loans

                        they weren't and after the financial crisis the banks started demanding huge amounts from the farmers

                        as a group, the farmers challenged the complexity of the derivatives in court and won

                        afaik their case was strengthened by 3 things

                        1. it was the countries biggest banks

                        2. there were many farmers caught

                        3. due to the bad publicity the banks didn't appeal the decision

                        https://www.stuff.co.nz/business/far...-bank--and-won

                        imho if it had been just a couple of farmers with a non-bank lender they would have lost their farms
                        Last edited by eri; 06-11-2019, 08:18 AM.
                        have you defeated them?
                        your demons

                        Comment


                        • #13
                          Originally posted by BradFromNZ View Post
                          (excuse the ignorance here but...) how do you get a mortgage that doesn't include the home you live in?
                          over investment property
                          Last edited by eri; 06-11-2019, 08:13 AM.
                          have you defeated them?
                          your demons

                          Comment


                          • #14
                            We had loans with them years ago and at the time the offset mortgage was innovative. We have the same with Westpac now. It is like having a low interest rate credit card but the maximum limit decreases like a table mortgage so at eg age 65 there is no more credit. You might be able to get one from them where the limit stays the same. If you tend to spend it isn’t a great idea. But if you have good self control it is very useful.

                            Comment


                            • #15
                              Originally posted by eri View Post
                              what is REALLY important in non-traditional? financial products

                              is the fine print

                              we can't go into fine print in any depth here because there is so much of it

                              and it's all different!

                              but here's a story from overseas

                              my sister in law was wanting to rent an apartment + needed a guarantor to get the lease

                              my wife had previously been her guarantor but when the real estate company noticed my wife had a new surname

                              meaning she was married

                              they wanted
                              me as the guarantor

                              i asked what my "liability" was

                              they seemed puzzled by the term, so i gave an example

                              "my sister-in-law smokes, if she were to fall asleep and drop a cigarette into some highly flammable synthetic bedding

                              resulting in her death, the death of many others, and the gutting of a multi-story apartment building in a very expensive city

                              what would be the maximum it could cost me?"

                              ......


                              there was a pause and then they said, "that very rarely happens..."

                              and i said

                              "wrong answer!"

                              so when looking at new + uncommon financially-engineered products

                              i recommend your questions always be along the lines of...

                              "how much am i exposed?

                              what is the worst that could go wrong?

                              could this in any way, shape or form

                              lead to me or my loved ones being evicted onto the streets?"

                              and record the questions and answers

                              if they won't put them on paper

                              ....

                              remember

                              if you have a term deposit in 1 of the big 4 banks, and they fold

                              the gov. is likely to bail you out

                              but if you've gone "off-grid"

                              you'll probably

                              end up in

                              a cold, dark hole in the ground

                              burning bark to cook your children's dinner


                              Love it Eri - as you say if you're thinking "it's too good to be true" - that's because it is.

                              There's a catch in there somewhere - find it and then decide if it's the deal of the century.

                              cheers,

                              Donna
                              SEARCH PropertyTalk About PropertyTalk

                              BusinessBlogs - the best business articles are found here


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