Spicers have the expertise to help guide you to the best mortgage option for you
The noise in the market place can be confusing:
- Mortgage rates are moving, is now may be a good time to buy?
- Fixed or floating rates?
However, the basics will always stay the same:
- Who will lend to me?
- What can I afford to borrow?
- What are the monthly payments going to be?
While most lenders have moved back to only lending 80% of the purchase price there is still access to funding that will provide 95% of the property purchase price.
Spicers have access to many different lenders. We have one application form that can be placed in front of several different lenders.
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Different Types of Loan Facilities
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Table Loan
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Chose a term up to 30 years with regular payments and set end date. The rate may be fixed or floating.
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Revolving Line of Credit
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Provides an everyday transactional account with a limit on the funds which can be borrowed or drawn against .
Overall interest may be lower as all deposits to this account keep the interest charge down . There is the ability to make lump sum payments and then redrawn any funds again up to the limit.
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Interest only
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The loan is repayable as a lump sum at the end of the specified term and the only payments due are those of the interest charged.
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Reverse Annuity
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Also known as equity release, this option provides access to the capital in your home to help fund expenses in retirement.
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Choice of Interest Rates
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Floating or Variable
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Rates can vary over the term of the loan depending on what is happening in the economy, both domestically and internationally. Payments can be made in excess of the amount set by the lender to help reduce the over all interest cost and will not usually incur a penalty.
Can be suitable for disciplined home owners who want to pay off a mortgage over a shorter term, (less than the standard 20, 25 or 30 years).
There can however be exposure to a negative impact on the household budget when the rates rise.
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Fixed
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Agreement signed with the lender to make repayments based on a set interest rate for a fixed term , anywhere from 6 months to 5 years . When the term expires the rate will default to the floating rate until an agreement is reached with the lender to refix the lending.
Budgeting made easier by the certainty of the payments however limited flexibility to make additional payments.
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Capped Rates
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Provide a variation on fixed rates where the rates are set and cannot rise above that rate but if the floating rate drops then the fixed rate may fall.
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We are able to source funding for residential property, investment property and business loans.
For further information, you can contact Spicers insurance and mortgage specialist for a free initial consultation.
Disclaimer: The investment views on this page do not constitute specific advice (whether of an investment, legal, tax, accounting or any other nature) to any person. The information has been published in good faith and has been obtained from sources believed to be reliable and accurate at the time of the preparation. The opinions contained in this document reflect a judgement at the date of publciation by Spicers Portfolio Management and are subject to change without notice. A disclosure statement is available on request and free of charge.
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