There’s a certain corner of the brain that is designed to shut off once humans see a long list of seemingly unconnected pointers that are titled ‘End User Agreement’ or ‘Terms and Conditions.’ When was the last time you sat through one of those lists and read it until the end, understood what you getting into, and then put in your signature or gave your approval? While installing software or signing up for a social network, the implications of not reading the terms are not generally too severe. What about the more important things in life like your home insurance? Insurance agreements have a lot of terms and conditions attached to them, some of them go to a few pages, and all of them are very important. Read more
Everyone wants a home of their own and mortgage interest rates govern this desire to a large extent. It is the same in New Zealand where one of the hottest topics of discussion and speculation is home loan interest. According to statistics nearly 50 percent of Kiwis have their own house, one of the highest numbers in the world. Read more
Until recently, most New Zealand home insurers based their insurance premium amount on the floor area of homes. This means that homes having similar floor area in the same geographical location would be covered to more or less the same extent. This system failed to take into consideration the fact that despite these similarities, the cost of rebuilding different homes may require widely varying sums of money. The Canterbury earthquakes were an eye opener of sorts for the insurance industry and they prompted a significant change here. It is now up to the home owner to provide an accurate sum assured for his/her home, based on which the insurance coverage will be determined. Read more
Getting a new home, paying monthly mortgages, and setting up the rooms and furnishing can be a joy. The home you live in is most often the single most valuable thing in your possession. Apart from the house itself, everything contained inside it are also of great monetary and sentimental value to you. There are, however, looming risks that can be damaging and expensive. A home can face a whole range of threats that can involve a great deal of money to repair and restore. There can be damage done by nature, by negligence, or by accident, and there can also be acts of vandalism or theft. There is a clear need for insurance. Read more
Now that you have decided to apply for a mortgage and become a homeowner, there are two choices in front of you. You can either go for a fixed or a floating interest rate. It is never the case of one being so much better than the other. It is just a case of how the market is and what kind of a mortgage you would be comfortable paying off. For the most part, apart from the obvious difference there are a few more things that you should know about and consider before making your decision. Read more
If you are thinking of buying your first home, then it is time to do some budgeting! You will have to carefully plan how you will manage the total expense of purchasing a property, including mortgage, insurance and other costs, like legal fees. Read more
Interest rates are all set to rise as the Reserve Bank of New Zealand has increased the official cash rate to 3.5 percent. It indicates that the interest rates and the cost of borrowing are set to rise, making it more expensive to borrow money, and also increase the interest rates on existing mortgage rates. Are you wondering how it will work? To what extent will it impact you, the home owner and payer of monthly mortgage payments? How can you be prepared to face the rising costs? Here are the answers to your queries.