Revolving home loans

A revolving home loan is sometimes called a line of credit or revolving credit mortgage. It’s like having a large overdraft. The idea is to help save on interest by keeping the daily balance of your loan as low as possible.

You can do this for example by direct crediting all your income into the account and then paying your bills and everyday expenses from the account as you need to. Revolving home loans have a floating (or variable) interest rate. Some people will mix and match by having some of their borrowing on a fixed interest rate mortgage and some on a revolving home loan.

Here’s how it works
The interest is calculated on the daily balance of your account, so by keeping the loan as low as you can, for as long as you can, you should pay less interest. You have the option of making lump-sum repayments and if you need the money again, you can redraw up to your limit at any time. Some revolving home loans have a credit limit that steadily decreases to help you stay on track to the day you’ll be debt free. As these are also transaction accounts the usual bank fees can apply for things like deposits, withdrawals and setting up an automatic payment.

For and against
For: If you’re good at controlling your finances you can repay your home loan sooner. If your income is uneven, a revolving home loan may be best for you, because there are nofixed repayments but (depending on the product you select) your limit might reduce each month. You can help save on interest by putting spare money into this account instead of a savings account.

Against: You need self-control. If you keep borrowing up to your credit limit you’ll end up paying interest on the full loan amount year after year.

What exactly is Trauma Insurance?

Trauma insurance pays you a one-off lump sum if you have a serious medical condition specified in your policy (like cancer, heart attack or stroke). You could use the benefit to: pay for private medical costs! make lifestyle changes so you can focus on recovery – like permanently reducing the number of days you work.

Did you know?

  • Every day, there are 58 new cancer cases registered and 23 deaths from cancer in New Zealand.
  • Over 2,900 New Zealand men are diagnosed with prostate cancer every year.
  • Every day about 24 New Zealanders have a stroke. A quarter occur in people under 65.
  • Each year 2,800 women are diagnosed in New Zealand with breast cancer.

Want to know how you can arrange this cover? 

It’s easy, give us a call for more information.

Phone: 09 521 3112 or mobile: 021 549 965
Free Phone: 0800 PRVIDR (778-437)

Why do I need life insurance?

Life insurance has several purposes. Its most important function is to replace the earnings that would cease at the death of the insured. For businesses, life insurance is a way to protect key employees and the business itself.

If you die during your earning years, your family could suffer a severe economic loss as a result of losing your current and future income. Unfortunately, your family would still have to pay its regular bills, the mortgage, and outstanding debts, and perhaps even continue saving for college and retirement. Unless you’re independently wealthy, achieving these goals may be virtually impossible for your family with the loss of your steady income. Life insurance offers a way for your family to continue living comfortably and without worry.

Employers often purchase life insurance policies on key employees to insure against the loss of services or income that might result after an employee’s death. Here, the proceeds from the policy are paid to the company. Life insurance works for business partners too, where one business partner purchases a policy to insure against the financial loss that might result from the other partner’s death or to buy out the partner’s heirs.

Life Cover – Lump Sum
Provides a lump-sum payment and is designed to help your family or your business.

Life Cover – Family Protection
Designed to minimise the impact on lifestyle after your death through a monthly payment to your family, rather than a lump sum.

Accidental Death
This lower-cost cover option pays a lump sum only if death is a result of an accident.

 

12 Ways to Make a Fantastic First Impression on Buyers

First impressions count.

You may not be able to tell a book by its cover, but you’ll likely pay more for a book if the cover is charming and attractive.

If your home is for sale, or soon will be, creating a positive first impression is one of the most important things you can do. Thankfully, it’s not hard. Here are 12 steps you can take; most of them fall under simple maintenance and organization, but some of them could possibly help you decide when it’s time to move.

How to impress visitors

1. Go outside. Mow the law, prune bushes, remove dead tree branches, and get rid of outdoor furniture you don’t plan to take with you.

2. Clean the front door and lintels, or paint them if necessary.

3. Check for leaks throughout the house. A drip may not seem important, but it could suggest poor maintenance elsewhere in the house. Don’t leave room for doubt in a buyer’s mind.

4. Clean out closets and storage areas. Donate old clothes and furniture to local charities. This will create a sense of greater space in the home, and mean fewer items to move.

5. Professionally clean the carpets. This is especially important if the carpeting will remain for the new owners.

6. Flip every switch to make sure the electrical works throughout the house. Prospective home buyers will do this. Fix any switches that need help.

7. Caulk around tubs and sinks. New caulk looks better than old caulk, and you’ll also prevent those tricky leaks.

8. Replace lightbulbs that don’t work and use as much wattage as the fixture will take. Good illumination makes your home seem light and airy.

9. Tour the property from the perspective of a first-time visitor. Is there anything that may seem uncomfortable to visitors? The 30-year-old green shag carpeting can be off-putting and mirrors in poorly lit basements can be dangerous, for example.

10. Clean out medicine cabinets. Remove out-of-date items, and consider removing prescription pills when buyers visit. Buyers might look in every nook and open every door. No one wants to be embarrassed by what they find.

11. If you have a pet, make arrangements to have it elsewhere when your home is being shown. Some people have allergies. No one wants to be barked or pawed at when they enter.

12. Ask your Financial Adviser to examine the property for specific showing tips to make your home more attractive when compared to others in the area.

Source

Home equity: What is it? And why should you care?

The term ‘home equity’ has become a bit of a buzz phrase of late, thanks in part to the recent release of Auckland Council’s 2014 capital valuation (CV) figures.

An average increase in home values of 29% across the region means some Auckland homeowners have found themselves in a position where the equity in their properties has significantly increased.

It’s not just an Auckland phenomenon. Property values are increasing around the country, and many New Zealand homeowners will be wondering what this all means for them. Let’s break it down simply.

What is home equity?

Home equity is essentially the total value of your home, minus what is owed to a lender.

Read the full article here.

2014 was a year of mixed sentiment in the residential property market

It was a stop start year for residential property values with some flat periods due to uncertainty associated with the LVR speed limits, interest rate hikes and an election, along with periods of rapid value increases in some areas and decreasing values in others.

Overall the nationwide average shows residential property values increased 4.9% or $22,652 during 2014 from $466,022 in December 2013 to $488,674 in December 2014, according to the latest statistics from Quotable Value (QV) powered by CoreLogic.

The average national value increased 1.5% over the final three months of 2014 and nationwide values overall are now 17.9% higher than the previous market peak reached in late 2007.

Values in the Auckland region increased 9.8% or $68,309 from $693,549 at December 2013 to $761,858 at December 2014. They rose 4.2% over the past three months and are now 39.4% higher than the previous peak of 2007.

Sales volumes were also down on 2013 for every month despite picking up towards the end of the year however they remain at historically low levels and CoreLogic research shows there were changes in who was buying property during 2014.

QV National Spokesperson, Andrea Rush, “After a slow start to the year following the introduction of the LVR speed limits, values picked up in February and March but then following four interest rate hikes during March and July value increases plateau-ed.”

“The prospect of further interest rate rises in the lead up to the election seemed to cause some uncertainty as to whether the market had peaked and this led to a slowdown in the market during the middle of the year.”

“For Auckland and Christchurch value increases slowed while in some other centres such as Wellington, Hamilton and Dunedin saw a decrease in values during this period.”

“However, once the election was over and interest rates rises were put on hold, there was a surge of new listings and activity with the coming of spring and values began to tick upwards again in most of the main centres.”

“The return of relatively low interest rates offered by the banks with cash incentives coupled with record migration levels has since led to a strong reacceleration of values in the Auckland.”

Read the full artical and view graphs here.