We all want financial security, now and into the future, especially when we are raising a family. So, whether you’re looking to buy your first family home or upsize to meet the needs of your growing household, NATHAN MIGLANI of NZ Mortgages offers some insights into the property and mortgage market to help you make informed decisions for your family.
One of the questions we’re currently being asked is: “How long should I fix my mortgage interest rate for?” While there isn’t a one-size-fits-all answer, our general advice is not to fix the term for longer than two years.
Overseas, inflation is starting to ease up, and with New Zealand typically following along behind, we expect to start seeing the same here sometime soon. You’ll see that longer fixed terms at the major banks now have lower interest rates than shorter terms, which is another clue that change is in the wind – banks are anticipating that rates will eventually come down.
The current test rate, which banks use to test if people can afford the mortgage, is 8.6%, making affordability harder for first-home buyers. With interest rates tipped to lower, we hope that test rates will too. Also, if the Loan-to-Value Ratio (LVR) restrictions are scrapped towards the end of the year, as some predict, that will help first-home buyers, lowering the deposit they will need.
Whatever your family’s needs or your budget, if you are looking to sell and buy in this market, you need expert advice on how to structure your mortgage correctly so you can maintain your lifestyle while being smart about getting your home loan paid off.
At NZ Mortgages, we have more than 25 years of combined experience, and with offices in Christchurch, North Canterbury and Rolleston, we’ve got the area covered. So give the NZ Mortgages team a call on 0800 100 300 or email: email@example.com.
Kids & money
Raising money-smart kids starts early and in simple ways, with playful interactions, conversations and opportunities to make decisions. By Stacey Wesley
Engaging with young children in ‘shop play’ can plant the seeds of learning about money.
The money you can’t see
It’s important we start to talk about where our money goes with our children. A child as young as five can begin to understand the concept of paying bills and rent or a mortgage.
Give them the list at the shop. Let them compare the prices on the shelf. What’s the best value? Allow them to pay for small items in stores if using cash and check the change.
In our family, we all have things we do that contribute to the day-to-day running of the household, and no one gets paid for these. But, there can be extra things the kids can do to earn a little pocket money, like washing Dad’s car.
Priorities and choices
Let them spend their own money, but have a conversation about how, if they spend it on this item, they won’t be able to buy something else.
Opportunities to give
Teach your children the value of giving. A small donation to a worthy charity is a great lesson. So too is passing on special toys to a charity shop so that another child might buy them.