![]() ![]() ![]() Just bear in mind that you’ll also likely pay a higher interest rate (more on this below). ![]() So, if you are a first home buyer you may be able to use a 10% or even a 5% deposit. The banks still have the discretion to lend money to some borrowers with lower deposits.Īnd it’s worth noting that banks are often a bit stricter with investors than owner-occupiers. It’s important to note not all lending needs to come under these restrictions. Property investors need a 35% deposit when purchasing an existing property.Owner-occupiers need a 20% deposit to buy an existing property.Owner-occupiers and investors need a 20% deposit to buy a New Build property.This regulates how much a bank can lend against a property. The Loan to Value Ratio restrictions were introduced by the Reserve Bank in 2013. Some Kiwis can now get mortgages with just a 5% deposit others will need 35% or higher. The deposit you need to get a mortgage isn’t the same for all borrowers. But, solely switching to a monthly or fortnightly repayment? That makes very little difference. To be clear, making extra repayments against your mortgage will pay it down faster. If you get paid monthly, it makes sense to pay the mortgage every month. If you get paid weekly, then making weekly mortgage payments makes sense. So setting the frequency of your mortgage repayment often depends on convenience. Think about it another way – people who get paid monthly don’t get paid less than people paid fortnightly. That’s because there is an average of 4.33 weeks in a month, not 4. Because if you go to the bank and ask to pay your loan fortnightly, they don’t half your monthly repayment. Some people think they make an extra 2 repayments per year if mortgages are paid fortnightly. This is because there are 26 fortnights in a year, and 12 months. Some people think your fortnightly mortgage payment will be half the monthly payment. Some people think that paying weekly or fortnightly saves on interest costs. Should I pay weekly, fortnightly or monthly? That’s short-term gain for longer term pain. But, you’ll end up paying more interest to the bank over the life of the loan. If you pay the bank back more slowly your repayments will be lower. It’s short-term pay (a higher repayment) for long-term gain (paying less interest). In doing so you’ll pay less interest to the bank over the life of your loan. That’s because you’ll pay off your mortgage faster. However, you also have to think about how much interest you’ll pay.įor example, if you pay off your mortgage really quickly, your repayments will be high. The longer your mortgage term, the smaller your repayments will be. The shorter the mortgage term, the higher your repayments will be. So, if you are applying for a mortgage for the first time, using a 30-year term is a good start. In New Zealand, the maximum term most banks lend for is 30 years. The term of your mortgage is the number of years you’ll take to pay off your mortgage. What term should I use in the mortgage calculator? ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |