Horizon Financial - Free, independent financial advice for people in New Zealand or moving to NZ - earlyrepayment

By: Horizon Financial  06-Dec-2011
Keywords: Bank, Mortgage, Savings Account

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.

Keywords: Bank, Mortgage, Savings Account

Other products and services from Horizon Financial

06-Dec-2011

Horizon Financial - Free, independent financial advice for people in New Zealand or moving to NZ - insurance

Should either principal family member die, their life insurance cover will repay the home loan and Family Protection cover will replace the lost income from the deceased family member, for a number of years specified by the insured person. At Horizon Financial we are uniquely positioned to give you the best advice on all your insurance and security concerns, no matter whether you're emigrating to live here, or are already a citizen or resident.


06-Dec-2011

Horizon Financial - Free, independent financial advice for people in New Zealand or moving to NZ - buying

Once you've decided on an area, contact Horizon Financial - we'll put you in touch with a Real Estate professional who knows the local area and can help you find your ideal home. SellingIf you decide to sell your home, you have the choice in New Zealand of using the professional services of a real estate agency, or of selling you hom eprivately.


06-Dec-2011

Horizon Financial - Free, independent financial advice for people in New Zealand or moving to NZ - firsthome

As a first home buyer through Horizon Financial, you won't have to climb a steep learning curve or spend hours seeking the best interest rates or other information. Staying focusedWhen you visit a property that looks interesting, it's easy to get overwhelmed with excitement at the prospect of buying your first home. To get an idea of how much you could potentially borrow for a home and what the repayments might be, use our Loan Calculators.


06-Dec-2011

Horizon Financial - Free, independent financial advice for people in New Zealand or moving to NZ - building

This is because your builder bears the cost of borrowing money to buy materials and pay his labourers during the construction project and this will increase the overall building cost of your home. Progressive draw-down loansWith this type of loan arrangement, your building company is paid by the bank upon ratified completion of clearly defined stages of the construction project.


06-Dec-2011

Horizon Financial - Free, independent financial advice for people in New Zealand or moving to NZ - investment

Selection of the right property, in the right area and for the right reasons will ensure good occupancy, good return on investment and good resale potential. Pay off your mortgage fasterWe can even show you how investing in a new property can help you pay off your mortgage faster on your first property. Property is an inflation proof investment which also comes with numerous tax advantages for the canny investor.


06-Dec-2011

Horizon Financial - Free, independent financial advice for people in New Zealand or moving to NZ - calculator

This mortgage calculator tells you your monthly repayments, based on the property's sale price, the term of the loan, your down payment percentage and the loan's interest rate. This calculator tells you how much you need to earn in order to be able to borrow a known amount. This calculator will tell you how much you can borrow, based on your earnings. It can also return a complete amortisation table for the term of the loan.


06-Dec-2011

Horizon Financial - Free, independent financial advice for people in New Zealand or moving to NZ - power saver

The low ongoing fees on the plan mean that your money accumulates faster - the added power of compounding interest boosts your investment and gets you to your goal faster. There is no fixed-term so you can plan for both medium and long-term goals in one plan and access funds if you need them along the way. It is a flexible plan that offers access to a range of investment options depending on the level of investment risk that suits you.