Confused? Mortgage management 101
OPINION: If you’re a homeowner, you know that a huge chunk of your monthly income almost instantly disappears onto your mortgage. It’s a bittersweet transaction, really. Mortgage repayments can often be a huge amount of money but, while you know it’s a good thing in the long run, sometimes you could really do with the cash right now.
I’m very privileged to own the house I live in. But I’m almost completely clueless when it comes to the finance surrounding it. Despite being a very capable, strong, independent woman, sometimes it’s just easier to leave it up to my husband to manage our mortgage because my mind just doesn’t do maths.
Times are tough right now for many New Zealanders. Rising interest rates and the everincreasing cost of living are all over the news, and for many
Kiwis it’s hard to see where they could cut back.
Your house is your biggest and most important asset – but it’s also the most expensive. It’s easy to feel resigned to the rates or provider you’ve currently got, and cut back in other areas to free up some day-to-day cash. But one key area where you could save (or make) money is your mortgage. As interest rates rise, some mortgage providers are offering incentives to encourage homeowners to make the switch to them, like cashback or KiwiSaver top-ups.
But navigating banks and financial institutions and the rates and incentives they’re offering (well, before they go up again in who knows how many weeks . . .) can be daunting.
To fix or not to fix? To stick with the same bank or switch to someone else? To open a revolving credit account or to off-set? If these words are confusing, you’re not alone (let’s start a support group!).
The good news is, just because you’ve been with the same mortgage provider for a number of years, doesn’t mean you have to stay with them forever.
When it’s time to refix your mortgage, don’t be afraid to look at your options rather than simply defaulting to what you’ve already got. It might feel easier to stick with the status quo, but shopping around could free up some cash in the immediate future and save you money in the long term.
NZ Compare makes comparing
is a 100 per cent Kiwi-owned community platform that helps the neighbourhoods of Aotearoa thrive. By exchanging helpful information, goods and services in a safe and trusted way, it's never been easier to feel part of the neighbourhood. Join today at
everything to do with money easy.
Its Money Compare tool lets you shortlist, analyse, and compare home loans, personal loans, credit cards, KiwiSaver funds, and insurance options currently available on the market that will best match your financial situation and lifestyle. All displayed rates are in real time, and multiple results are returned at the click of a button so you don’t have to visit multiple banks and websites and work out the best rates for you.
To find out how you can get the most out of your mortgage, visit nzcompare.com.
This article was commissioned in response to a commercial partnership. We have produced it independently, to the same standards applied to the rest of our journalism.