Personal Business

So you’ve decided to take on one of the biggest financial commitments you’ll ever make? We answer some of the biggest questions we’re often asked by borrowers. 

Yes! Mortgage protection insurance bought as life cover pays out enough in the event of your death to cover the amount of your mortgage. It can also be bought as mortgage repayment insurance, which will cover regular mortgage repayments if you cannot work because of illness or accident. Some policies, such as those offered by a bank, may have restrictions – especially for self-employed people. Advice is available from either an independent insurance adviser or a broker.

It’s a smart move to regularly review your mortgage, especially your repayments and interest rate. Aim to check in every year or two, or when key changes occur, such as:

  • Your fixed rate loan is nearing expiry
  • Your floating interest rate adjusts
  • You’re facing a major life change, like starting a new job
  • You receive a large lump sum, such as an inheritance

Also take a moment to reassess how much you can really pay off. Ask yourself: Are these repayments still the most I can comfortably manage? Even increasing your payments by just $25 a week could save you thousands in interest, and help you become mortgage-free months or even years sooner.

Here are some important questions to ask your lender before taking out a loan:

  • What fees do you charge?
  • Are there any application fees or additional charges, such as a low equity fee?
  • For fixed-interest loans, what are the costs if I increase repayments, make a lump sum payment, or pay off the loan early?
  • What is the total cost of this loan, including all fees and interest for the amount I’m borrowing and the term I’ve chosen?


The lender will estimate this based on assumed interest rates, but it gives you a clear picture of what you'll repay overall. (Lenders are legally required to break down interest and fees separately.)

It’s also worth asking: If interest rates increased by 1%, what would my annual repayments look like? This will help you understand how rising rates could impact your budget.

If you're struggling to keep up with multiple high-interest loans such as a car loan at 15% or credit card debt at 19%, it may be worth looking into consolidating those debts into your mortgage.

  • This can significantly reduce your monthly repayments, freeing up cash flow.
  • However, be mindful that stretching the debt over a longer period could result in paying more overall.
  • To avoid this, increase your mortgage repayments so your loan still finishes on the original end date.
  • For example, if you're adding the cost of a car to your mortgage, aim to repay that portion within the car’s expected lifespan, typically around five years.


With the right structure, this strategy can make your debt more manageable and cost-effective.

 

Approach your broker or lender with a complaint or problem in the first instance. If that doesn’t result in a satisfactory resolution there are independent bodies available which can investigate and help settle disputes such as the Banking Ombudsman and the Financial Services Federation, which represents some non-bank lenders.

There’s plenty of ways to get the most out of your mortgage and save in the long run. Here’s a few things you can do. 

  • Making extra repayments, even small ones, can significantly reduce both interest costs and your loan term.
  • Paying more frequently, such as weekly instead of monthly helps reduce the principal faster, lowering overall interest paid.
  • Keep an eye out for lower interest rates. Your mortgage broker can help you find better deals, thanks to their deep market knowledge.
  • Look for loans with valuable features and benefits that don’t come with added costs.
  • Work with your broker to negotiate the lowest possible rate, as saving upfront can mean big savings over time.
  • Small changes make a big impact. Redirecting just $100 a month toward your mortgage could save you thousands.
  • Align your loan repayments with your salary cycle to make budgeting easier.
  • Review your mortgage regularly. Adjusting your loan to suit your changing needs can save you thousands over its lifetime.