If you’re not enjoying the double jeopardy of home loan interest rate rises and the increased cost of living, it’s time to regain financial control.

As you well know, the home loan and housing markets in New Zealand have experienced dramatic turbulence in recent times. Enough to make many homeowners reach for the airsick bag.

Three years ago the official cash rate (OCR) reached a historically low level of 0.25%[1], feeding a continuing decline in mortgage interest rates. The lowest rate we saw was about 2%. Now the situation has reversed. The OCR currently stands at 5.5% and the average one-year fixed rate for owner-occupiers is around 7%.

On top of this, the cost of living has been reaching for the sky. It’s no wonder that refinancing or restructuring a home loan is front-of-mind for New Zealanders looking to create more wriggle room in their household budgets.

What can you do to relieve the pressure?

If you’re not enjoying the double jeopardy of home loan interest rate rises and the increased cost of living, we have a proposition for you. How about tapping into the property finance expertise at Apex Advice? It’s the perfect time to consult your adviser about a better approach to borrowing, because we’ve just launched our new Loan Smart offering.

What is Loan Smart and how could it help you?

Loan Smart is a blend of strategy and service. It’s a highly personalised approach to gaining more control over the current financial challenges via your home loan. What’s more, the service we offer to Loan Smart clients is free of charge, as our advisers get paid by the banks.

In a nutshell, here’s what Loan Smart can do:

  • By working closely with your Apex adviser, you can tailor your borrowing to match your current life stage, goals and needs, so you feel more in control of your financial future.
  • For cash flow improvements, your adviser might suggest refinancing to lower interest rates, extending loan terms, assessing payment deferral programmes, debt consolidation, financial planning or accessing home equity.
  • To fund dreams or ambitions, like renovating your home or travelling the world, you could explore the idea of a cash out refinance through Loan Smart.
  • On the other hand, if your goal is to pay off your loan faster, your adviser might recommend refinancing to a shorter-term loan, making extra principal payments, moving to fortnightly mortgage payments, mortgage recasting or exploring another loan setup, such as revolving credit or offsetting.
  • Loan Smart isn’t a ‘set and forget’ service, because the home loan market never stands still. To ensure your borrowing stays tuned for the times, we include Loan Smart in your annual client review.

Take Loan Smart for a test drive by requesting a review

If you’re with Apex Advice for insurance or investment, but your home loan comes from another source, you have nothing to lose by looking at Loan Smart. It’s possible that you’re already thinking about restructuring or refinancing a home loan, to make adjustments for the current economic conditions. By connecting with your Apex adviser, who you already trust with other aspects of your financial life, you’ll quickly find out if making a home loan change is worthwhile.

Customer feedback tells us that Loan Smart works

For Apex Advice clients who are already using our Loan Smart service, the benefits are solid. Here’s what they’re telling us:

“The fixed term on my mortgage was about to expire and I needed to make a decision on the way forward. There was a lot of uncertainty with what was happening in the market, especially with regards to interest rates, so I spoke to Kym and she took me through the Loan Smart process. She provided me with a few options and some vital information to assist me with me decision. I’m so happy with the advice I received! I am glad that I spoke to Kym because I very nearly made the wrong decision which would have had some expensive consequences. – Russell P”.

“When I was first offered by Apex for one of their specialists to have a look at my home loan structure, I was hesitant. However, Apex and Kym, their Home Loan specialist, made a big difference. My bank was offering a fixed loan interest rate for my mortgage and with the assistance from Kym, who negotiated with my bank, my interest rate was reduced to a manageable amount that fitted into my budget.  Thanks Kym and Apex” – Janine C

Curious? Give your adviser a call

If you’d like a fresh view of your borrowing through the Loan Smart lens, call your Apex adviser on 0800 809 009 or homeloans@apexgroup.co.nz. You’ll get a no-obligation presentation of how Loan Smart works.