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Short of the right advice?



Do you have a 20% equity (the bit the bank doesn’t own) in your home? If you had less when you took out the home loan now may be just the time that you reviewed your situation.


Why do we say that?


Well it all has to do with interest rates and whether or not you’re paying the rate you’re entitled to.


If you had less than a 20% deposit when you purchased your home, most lenders will add what is called a low equity margin to the interest rate you are being charged. This margin can be as little as .30% or as much as 1.30% depending on how much deposit you had.


Whilst the low equity margin is an incentive for you to take every opportunity to ensure the value of your home increases, it is not always recognized that the value of your home has in fact increased to the point where you are now entitled to the “special” rates that lenders offer.


Good financial advice will ensure that as each mortgage fixed interest term expires, the current value of your home is checked to ensure that your new interest rate is as good as it can be!


Want to know more…..call us on (03) 281 8605 or email:


jerome@thompsonmcneill.co.nz


sandra@thompsonmcneill.co.nz

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