Mortgage News & KiwiSaver Advice
Not much happening with interest rates at present, the banks are all cutting margins to gain business and also declining marginal applications that 1-2 years ago would have been approved.
This is all part of the fallout from the Royal Commission in Australia plus the ongoing Capital Adequacy tightening here in NZ so expect more of the same in 2020.
The rise of the non-bank sector is spectacular with the newest entrant Pepper Home Loans already settling over 100 deals since their launch late last year.
Resimac has a fantastic 80% Product for Owner Occupied & Investment @ 3.89% 2 Yrs Fixed! and it will be interesting to see if others follow suit.
We are writing tons of applications in this space simply to get people in the door and on the property ladder at 4.50%-6.50%
However, providing a clear ‘exit strategy’ where we can shift the Mortgage to a main bank in 12-36 months is key!
I’m really excited to announce we are now offering KiwiSaver Advice alongside our highly reviewed Mortgage & Insurance Advisory business.
We now have our own-in house KiwiSaver specialist – Susan Miao
After Reviewing over 500 first home buyer Mortgage applications in our time we’ve seen such a large gap in Kiwisaver balances between clients by as much as $20,000 or more when applying for their first home.
We’ve seen couples on similar incomes, same contribution rates and even very similar Kiwisaver start dates have a massive difference in their Kiwisaver accounts by $20,000 or more.
One of our clients has a whopping $103,500 to use as a deposit (not counting partners KiwiSaver or their savings) after just being in KiwiSaver for a little over 6 Years (at 8% contributions, however).
The really cool thing, however, he is on a modest income of $60,320 p.a!
Nearly half of his balance is due to Investment earnings!!
What is the key difference?
Our clients that have considerably higher KiwiSaver balances like these… they were simply those that made a decision a few years back to receive professional KiwiSaver advice and opt-out of their default providers – usually the bank.
Instead, they have enjoyed the fruits of a professional, ethical KiwiSaver Provider that matched their investment strategy with their life cycle and Home buying goals
By the way, Milford is just one of the top providers we recommend! Others have outperformed them over the last 3 Years running
You see, these default providers were only ever supposed to be temporary holding pens for your Kiwisaver and that is all.
Still not convinced?
- 2 out of our top 3 providers have a snazzy Mobile app where you can check your Kiwisaver balance in real-time (not that we recommend you do so)
- Our KiwiSaver providers don’t issue mortgages Or Insurance Or Term Deposits Or Chequing Accounts and definitely no ATM’s. Nope, they just do KiwiSaver and Investments and do it bloody well.
- The providers we recommend only invest in ethically certified investments.
- The average default provider has a 5 working day turnaround time for first home buyer withdrawal requests, OUR providers offer a do it yourself service or a 1 Day average turnaround time.
- One of the conservative funds that we recommend has returned a whopping 11.75% p.a return after fees before tax for the year ending Nov 2019!! You can only imagine what their high growth category can achieve.
- Lastly approximately 1 out of 4 people are on the wrong Prescribed Investor Rate. Not sure what this is? Well, it’s kind of important if you get it wrong it could literally cost you thousands in Tax!
So our free Kiwisaver Advisory Service covers all of the above and so much more.