Why have Mortgage Managers created an Accelerated Equity Calculator?
Almost every first home buyer in larger towns or New Zealand cities will start with less than a 20% deposit and of course that generally means that you (as the first home buyer) will not be getting the best deal from the bank.
If you have not been able to save 20% deposit then the next best is to try and get to 20% equity as fast as you can.
Why? We want to help encourage people to get to 20% equity and therefore be able to get the best home loans, the best features and of course the best interest rates without any low equity margins added. You want to have the savings from the lower interest rates, and the flexibility from having the best home loans.
Your aim therefore should be to get to 20% equity as quickly as possible.
If you started with a 5% deposit then it might take a bit longer than if you had a 10% or 15% deposit. The problem with the banks is they penalise you even if you had a 19% deposit!
So how do you get to 20% equity?
There are two ways to build your equity and in most cases they work together:
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- You will be reducing your mortgage owed with each repayment that you make, and if you can increase your repayments then that accelerates how quickly you build your equity.
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- Your home will most likely increase in value over time.
For the purposes of this calculation we have used a default growth rate of 3.60% which is based on the Government stats websites.
Speak To A Mortgage Adviser
Our team of mortgage advisers know how to structure your home loans, and they are willing to help even if you have previously dealt directly with the bank or with another mortgage broker.
This is a service that we offer at no charge to you as most of the banks understand that you need good mortgage advice and will therefore pay us to help you.
We have arrangements with most banks and know the products to ensure that you are getting the best mortgage that is available for you.
