Our Advisers understand that having a mortgage is a big commitment as a mortgage is one of the biggest investments you can make in your lifetime. Dealing with financial institutions, filling out forms, and arranging documents can be a scary and overwhelming experience for anybody.
Wright Financial can relieve the stress by taking care of every detail from application submission to negotiating with financial institutions. We will take care of the entire process ensuring that you get your mortgage structure right, the first time.
Whether you are buying your first home, restructuring your current mortgage, or investing in a rental property, Wright Financial is here to help you find the right mortgage and the best deal for your needs.
Wright Financial mortgage services include:
- Doing all the legwork for you and working on your behalf with the lender.
- Comparing wholesale mortgage rates from a large number of banks and lenders all at once.
- Loan and accompanying structure options because we work with numerous banks and lenders.
- The financing of tricky deals because of our knowledge and various lending partners.
- Ongoing communication and reviews of your financial circumstances without the bureaucracy.
There are many types of mortgages. There can be different fees, levels of flexibility, and of course, interest rates. Each of these variables affects how much the loan costs and how long it will take to pay off the loan. Getting the wrong mortgage type and/or structure could cost you thousands.
Fixed Interest Rate Loans
With a fixed rate home loan, the interest rate you pay is fixed for a period of six months to five years. At the end of the term, you can choose to re-fix again for a new term or move to the default floating rate.
Floating Rate (or Variable Rate) Loans
Floating interest rate loans will increase or decrease as interest rates in the wider market change, normally linked to the Official Cash Rate (OCR). This means your repayments are susceptible to economic conditions meaning they can remain constant but are more than likely to go up or down when you least expect it.
Fixed and Floating Combination Loans
Wright Financial can split a loan between fixed and floating rates. This lets you make extra repayments without charge on the floating rate portion. You can increase your payments on the fixed portion but the increase in repayments will be locked in for the period of the fixed term.
Table loans are the most common type of home loan with a default term of 30 years for most lenders. Most of your early repayments pay off the interest, while most of the later payments pay off the principal (the initial amount we borrowed). Table loans can be applied to a fixed rate of interest or a floating rate.
Revolving Credit Loan
Revolving credit loans work like a very large overdraft. Your pay is directly credited into the account and bills are paid out of the account when they’re due. Working towards a zero balance in depositing surplus funds into the account means you pay less interest because lenders calculate interest daily.
You can make lump sum repayments and redraw money up to your limit. Some revolving credit mortgages gradually reduce the credit limit meaning you are paying principal and interest. This ensures you will pay off the mortgage over the term of the loan and save you thousands in interest payments.
Reducing or straight line mortgages repay the same amount of principal with each repayment, but a reducing amount of interest each time. Payments start high but reduce (in a straight line) over time.
Interest Only Loan
Interest only means you pay the interest only part of your repayments, not the principal, so the payments are lower. Investment or rental property borrowers will sometimes choose to take an interest only loan for a year or two so to either maintain cash flow and/or obtain tax advantages.
Offset loans give you the opportunity to balance your savings and everyday accounts against your home loan where you pay interest on the difference between the two. The interest charged still remains as per your loan structure being commonly that of a table loan.
For a limited time, submit your contact details and book an appointment with one of our advisers and receive a $50 voucher on your first visit.
Wright Financial Advisers have formal business arrangements with ASB Bank, Advante Financial, ASAP Finance, DBR, Kiwibank, Liberty, Resimac, Sovereign Home Loans, SBS, The Cooperative Bank, Cressida Capital, and Westpac.
Wright Financial will recommend the right home loan structure from these companies that best suits your individual needs based on your unique situation and our expertise.