That's why, as part of our brokerage service, we show you how with an easy-to-follow early repayment plan. Elsewhere you can pay hundreds, even thousands of dollars for such information.
Typically, a mortgage can be repayed using this method in about half the time. And you don't have to buy an insurance policy or start up a special savings plan either. We'll show you how to do it just by being smarter with the way you manage you money.
We'll show you how it's done - for free.
In New Zealand, mortgages are designed to be flexible. As such, they lend themselves nicely to early repayment. By carefully managing your income and expenditure through your flexible mortgage account, you can effectively reduce the balance owed to your bank.
The resulting reduction in interest increases the savings to you - and these savings are demostrably greater than you could achieve by putting your money into a savings account.
Interest and taxation
Interest earned on savings in New Zealand banks in taxed by the Inland Revenue, using a method known as imputing. A portion of your interest earned on savings is removed by your bank from your savings account and paid to the Inland Revenue on a regular basis.
But there is another way to save that's tax free - and this is where your early repayment plan comes to your aid again.
It works like this: With all banks, you pay more in interest on loans than you earn from savings. So any reduction you can make on loan interest will outweigh the gains you could make from a savings account. And best of all because you're reducing the interest you pay, it's actually a tax free way of saving.
Remember, Horizon Financial will not charge you to show you how to repay your mortgage early.
