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November 2018's Property Gazette
Published by Scott Miller
Explaining the Responsible Lending Code & How it Affects You
Have you noticed that many borrowers have recently begun finding it harder to obtain finance? The Responsible Lending Code has been designed to ensure lenders follow set guidelines when approving finance for lenders. This includes providing the following disclosures:
- Let borrowers know the T&C’s plus costs of borrowing on their website or in their place of business
- Give you all the important information you need in writing
- Provide you with information in writing upon request, including the T&C’s, costs and contract terms
All disclosures must be made before any loan is started. The lender also needs to check your financial position thoroughly before agreeing to the loan. They must satisfy that they believe you can meet the repayments and they are in line with your income and other expenses.
We can help you navigate the maze which the Responsible Lending Code has resulted in. Give us a call today for assistance with obtaining your home loan.
Why A Good Loan Structure is Important
Having the best possible loan structure for your mortgage is essential to keep your costs down. It can include having one or a combination of floating or fixed rates, short-term fixed rates a principal and interest loan, or simply an interest-only loan. The best structure for you will be one which suits your goals, achieves you the lowest costs for your situation.
With over 14 years in the home loan industry, Scott can tailor make a mortgage structure which suits your needs perfectly. Get in touch with Scott for a chat about your requirements today.
Regulation within the mortgage lending industry is predicted to continue to rise. You can relax in knowing that we will continue to offer the highest service available to our clients. We would love to welcome you to our client base and make obtaining a mortgage as stress-free as possible for you. Get in touch with our team to learn more about how we help you.
Wondering About Giving Up on Your Insurance?
Ever start to wonder whether if you would be better off to save money instead of paying insurance premiums year after year (commonly called “self-insure”).
Insurance premiums rise each year, driving many people to give up on insurance, sometimes the idea of saving premiums rather than giving them to a company seems good idea, right?
Before you set up that account here a few points to consider.
Understand the Risks you're taking
In a nutshell consider what you pay in premiums versus the likelihood of a claim.
Health Insurance
If you’re under 40 female, non-smoker, you’ll pay up to $30 dollars a fortnight for good basic cover.
Average cost of breast cancer treatment is $28,074 (Ministry of Health figures of average cost) It would take approx. 35 years to save that at $30 fortnight.
Do you need it?
For those uncalculatable odds of having a difficult illness and having to pay for non-Pharmac funded drugs the answer is yes.
Income protection
Based again on 40-year-old, non-smoking female, premiums could be up to $6o a fortnight for $4700 a month benefit (paying up age 65).
Without a personal insurer the challenge here is to have the ability to have enough reserves to be self-supporting. Very quickly it is easy to calculate there is a challenge to save anything like the above benefit to support yourself through to age 65.
Do you need it?
Consider the following:
If you have a partner who works, can they assist if you go down to one wage?
You're unlikely to get any government assistance if you're sick and can't work and if you are eligible for a sickness benefit this is a lot less than the average income.
How does your employer handle sick leave? i.e. if it accumulates this is handy if you have built up a healthy balance and could assist if you had an extended period of illness.
If you're not covered for a period of time off due to illness the yes you need some protection.
For information on the above or any of the other insurance we offer feel free to give us a call.