NZ Home Loans

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Forums › Finance and wealth management › NZ Home Loans

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Dratsab

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#1855456 30-Aug-2017 19:35

alasta: I believe they are actually a subsidiary of Kiwibank.

Yes they are. We've been with them for 2 years now and are very happy. Our mortgage is falling way faster than it had been when we were with Westpac, so very happy. Plus we seem to have more discretionary funds than we've ever had due to the reorganising of the mortgage structure and the way we do things.

Wiggum

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#1855536 30-Aug-2017 22:14

alasta:

No point in trying to sell me life insurance because I have an endowment policy that was taken out in the 1980s, and no alternative would make any financial sense!

I get that, but that seems to be the tactic of these types of lenders. They seem to be able to organize low deposit home loans, but the catch is normally that you need to buy into their insurance schemes too. Otherwise they not interested in lending you the money.

IMO, rather stick to the general banks. You will get a lower interest rates, plus the added benefits of fixed, variable or split interest rates.But at a higher deposit.

Dratsab

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#1855539 30-Aug-2017 22:22

There was no attempt to get us to buy into any insurance schemes.

If we'd stick with general banks we'd probably still be struggling, living from pay to pay rather than having an opportunity to get things we want and actually save some money.

Wiggum

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#1855540 30-Aug-2017 22:30

Dratsab: There was no attempt to get us to buy into any insurance schemes.

If we'd stick with general banks we'd probably still be struggling, living from pay to pay rather than having an opportunity to get things we want and actually save some money.

Hows that possible, care to explain what advantages NZHL have offered you that other banks don't?

MikeAqua

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#1855636 31-Aug-2017 08:50

NZHL wanted us (first time home buyers) to have life insurance so that if one of us died the mortgage gets paid. Not unreasonable IMO.

They were happy with a life insurance certificate of currency from a different insurer.

Mike

alasta

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#1855700 31-Aug-2017 09:42

MikeAqua:

NZHL wanted us (first time home buyers) to have life insurance so that if one of us died the mortgage gets paid. Not unreasonable IMO.

They were happy with a life insurance certificate of currency from a different insurer.

I assume this only applies for joint applicants? i.e. for single people they would assume that they would immediately recover their capital from the deceased estate?

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Dratsab

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#1855726 31-Aug-2017 10:04

Wiggum:

Dratsab: There was no attempt to get us to buy into any insurance schemes.

If we'd stick with general banks we'd probably still be struggling, living from pay to pay rather than having an opportunity to get things we want and actually save some money.

Hows that possible, care to explain what advantages NZHL have offered you that other banks don't?

It's simply the way we've chosen to split our mortgage up into 4 accounts, they way we now pool our money and the way NZHL calculate interest - daily: offset by how much you have in your accounts at the time. Banks can do a similar scheme but they won't offer it up front because they get far less in interest payments. Dirty stuff in my mind and I won't go back to them.

As I said previously, we used to struggle from pay to pay, now we don't. We broke with Westpac two years ago and went with NZHL. We borrowed a reasonable chunk more money to pay off credit debt plus we've since borrowed a bit more to have a nice overseas holiday. After two years we're now in roughly the same spot we were in with Westpac when we broke with them. Possibly that doesn't sound like a great deal to you but to us it's meant having discretionary income and wiping 6% off the principal in that same time. Being disciplined with money is also a factor in this.

With Westpac our mortgage would have been paid off in September 2042. With NZHL it's projected to be paid off in February 2031. We keep an eye on how things are progressing and so far we're nicely on track - funnily enough we're quite happy with that.

At the end of the day, it's all horses for courses: NZHL aren't the only game in town and banks can/will offer similar schemes to them if pushed.

pknz

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#1858219 4-Sep-2017 15:27

Thanks for all the feedback :)

MikeAqua

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#1858334 4-Sep-2017 17:53

alasta:

MikeAqua:

NZHL wanted us (first time home buyers) to have life insurance so that if one of us died the mortgage gets paid. Not unreasonable IMO.

They were happy with a life insurance certificate of currency from a different insurer.

I assume this only applies for joint applicants? i.e. for single people they would assume that they would immediately recover their capital from the deceased estate?

I'm guessing banks would rather have a life insurance settlement (cash) to claim against than have to wait for a house to sell.

Mike

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