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  1. #1

    Default 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. #2
    Join Date
    Nov 2006
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    Default

    Do you pay your credit card off every month? If not, do not go with one of these loans.

  3. #3
    Join Date
    Jan 2012
    Posts
    1,072

    Default

    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.

  4. #4

    Default

    Quote 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

  5. #5

    Default

    Quote 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?

  6. #6
    Join Date
    Jan 2012
    Posts
    1,072

    Default

    Quote 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.

  7. #7
    Join Date
    Sep 2008
    Posts
    7,650

    Default

    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 at 09:37 PM.
    have you defeated them?
    your demons

  8. #8
    Join Date
    Jan 2012
    Posts
    1,072

    Default

    Quote 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?

  9. #9
    Join Date
    Sep 2008
    Posts
    7,650

    Default

    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

  10. #10
    Join Date
    Jan 2012
    Posts
    1,072

    Default

    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.


 

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