adviser.co.nz

Servicing the needs of over 6000 customers since 1970

Our products and services

Life and Critical illness insurance:

If you are aged 16 - 55 and wish to get an online quote for Life or Critical Illness Insurance go to our associate site at www.nzlife.co.nz


Funeral Insurance:

If you need a simple funeral plan, with a level premium and no health exams -  www.goldenlife.co.nz


Medical Insurance:

Pay less for medical insurance.

100% cover up to $250,000 per annum - no limits.  If you want an instant Medical Insurance quote - www.nzmedical.co.nz


KiwiSaver and retirement planning:

If you need information about KiwiSaver, retirement planning, or budget changes.  Information is available for employers, employees and individuals. 

www.retire.co.nz


For other advice:

For general advice about how we can help you with insurance , investment and mortgage products.  Then this site is right for you.


Home Mortgages

For most New Zealanders, the goal of owning a home is still achievable. We enjoy helping many to achieve this objective. 

With current interest rates, many existing home owners are saving $,000s by replacing the current mortgage with a new mortgage at lower rates, and flexibility. Refinancing is a simple process and can be obtained from traditional lenders such as Banks, or the newer lower cost non-bank lenders. Contact us.

Today, there are many options available to the home buyer, and these need to be fitted to your needs and circumstances. We can assist in this process in selecting and designing the appropriate mortgage for your current and future needs.

Points to consider are:

Income:

You need to be able to demonstrate that you earn sufficient income to service the mortgage repayments and continue to cover other living costs. Most lenders will consider the use of up to 40% of your gross income for mortgage servicing. This places an upper limit on the sum that will be lent.

Loan to value ratios:

Now up to 80% of purchase price or valuation (whichever is the lower) on owner occupied property. This means you will need a deposit. Some lenders require less.

(Note: Some lenders charge an extra insurance fee for less than a 20% deposit).

A maximum of 80% for Residential Rental property.

Normally 40% equity is required for Commercial property purchases. Mixed residential/ commercial properties are treated as commercial for lending criteria.

Note your deposit is your initial equity in the home. As your repay the mortgage and/ or the market value of the home changes, so does your equity. Some use the equity in one property to finance another. If you wish to do this remember that the lenders will require security over both properties.

Fixed or Floating Rate lending:

Available on a principle and interest basis or interest only from a variety of sources to meet your needs.

These can be mixed with say a fixed% and a floating % say 80/20. While fixed rates give certainty, early repayments can incur penalties from some lenders. For this reason it is useful to include a floating % in your mortgage. Combined with the flexibility to make extra repayments or direct crediting of salary/wages, the use of the floating rate can lead to a substantially earlier repayment of the mortgage.

Rates are constantly changing to reflect treasury and government policies and lenders borrowing costs and margins. Contact us here for samples of the current rates. Please remember that any rates quoted may change prior to the mortgage being approved.

Revolving Credit or Redraw Facilities

This enables you to fund other spending requirements at Mortgage interest rates. Revolving Credit facilities use the security of your home and cost up to 1% extra.

Redraw facilities use the extra $ you have repaid early. There is normally no extra cost in using a redraw facility apart from the interest on the amount drawn.

Valuations

Lenders require a recent Valuation from either a valuer for low equity loans or where equity is high, they will accept the latest government valuation. This is normally included on the rates bill.

Repayment Term

This can be up to 30 years although some lenders will calculate the difference between your current age and 65, when it is expected you will stop working.

A long period can be set initially to achieve a minimum repayment amount and actual payments increased to achieve an earlier complete repayment, and optimise any Redraw facility.

Charges

In purchasing a home you can expect charges for:

  • Mortgage establishment fee or similar (up to 1%) We can reduce or eliminate the establishment fees with some lenders. Mortgage Insurance for low equity loans. Valuation costs - approximately $300 for a valuer. We can use the GV at no cost if there is sufficient equity. Legal costs - approximately $700. We can reduce or eliminate legal costs with some lenders.

Most lenders will also require that the loan be covered with an appropriate mortgage insurance policy. For further details see Mortgage Insurance below.

If you would like an assessment of a possible mortgage for a new home, investment or commercial property or to refinance an existing property, please get in touch.


Mortgage Insurance:

Our Mortgage Insurance policies, provide cover for the amount outstanding in a mortgage as it reduces over the term. Medical examinations are normally not required. It is designed for single people or families covering both partners and reducing at a similar rate as the mortgage. Can be paid as a lump sum or annually or monthly. We strongly recommend the annual or monthly option as the average period of a mortgage is only 7 year's, and rates have been reducing in recent years as we live longer. It can easily be stopped at no cost if the mortgage is repaid early. It can be adjusted easily to reflect any changes in a mortgage.

Some banks like to add it to your mortgage as a lump sum, charge interest on it and then retain a large administrative charge if you repay early. It is far cheaper in the short and long run to pay as you go.

If you would like a quote to cover your current mortgage, please get in touch




Costello Financial Services

Experienced - Trustworthy

Successfully servicing over 6000 satisfied clients since 1970.