New Zealand Home Loans
Obtaining a mortgage home loan in New Zealand is very straight forward and simple.
New Zealand Mortgage Solutions offer assistance with structuring a number of different home loans. Each loan is calculated on a personal, individual basis.
Explanation of the Different Types of Loans:
- FIXED RATE: In this type of mortgage, the interest rate will never change. You are guaranteed that your mortgage payments will never increase or decrease due to interest rate changes. You may choose this option for as little as 6 months to as long as 5 years. Once the term of your fixed rate loan has expired, New Zealand Mortgage Solutions can help you create a new fixed rate loan.
- TABLE MORTGAGE: Table mortgages are a standard, traditional type of loan in which borrowers can spread out their payments for as many as 30 years. They pay the same amount each month in payments for the course of the loan, however, they may be required to pay for a longer length of time due to interest rate changes. These are the standard type of mortgages in New Zealand.
- INTEREST ONLY MORTGAGE: An interest only mortgage pays for the accrued interest only, and does not pay down any of the principal balance. The total loan balance remains the same. There are less repayments in this type of mortgage than in a table mortgage.
- FLOATING: A floating loan comes with a variable interest rate, with increases or decreases occuring based on decisions by the Reserve Bank. Floating loans are based on a daily interest rate which is very flexible to change. If you pay more than necessary for each payment, redraw facilities are available, in comparison to revolving credit mortgages, which offers complete redraw facilities.
- REVOLVING CREDIT MORTGAGE: Revolving credit mortgages are a flexible type of home loan. They allow borrowers to combine their savings anc cheque accounts. Borrowers can then make all of their payments for loans or other debits at the same time as they are depositing their salaries or rental incomes.
- REDUCING LOAN: Reducing loans are based on repayments which involve both the principle and the interest, enabling borrowers to pay off their loans.
- SPLIT FACILITY: Most New Zealand Finance customers make a portion of their loans on a fixed interest rate plan, and another portion on a revolving credit plan. The fixed rate options ensures a certain level of financial security, while the revolving credit allows them access to their banking accounts for withdrawal or deposits.
