Matters of Interest

Over my years of helping people choose the right mortgages and insurances, I’ve come across many who look embarrassed when the talk turns to deposits, cash projections, lump sums and interest rates.

Whenever you apply for a home loan, credit card, HP or any other form of credit, the lender will run some checks. Because if someone’s advancing you money, they’ll want to know if you can pay them back.

Imagine the state taking control of your house, Kiwisaver funds, insurance policies, and any other assets you’ve accumulated, and then deciding who inherits them.

Banks only charge interest on the precise amount of money outstanding on your loan. They calculate this interest every day.

Spring is almost here, and that’s when Kiwis start browsing listings and going to open homes.

A lot of clients ask us this question. We understand why they want to know, because there’s a lot at stake.

I realise that an email from your Financial Adviser might not be the most exciting thing in your inbox. But bear with us, because we’re trying to do the right thing by you.

Here’s a tip that might come in handy: Get your phone out, open the camera, and video any possession that you might need to claim on your insurance one day.

Cutting costs is a smart move. Cancelling your insurance probably isn’t.