THE RATE ESCAPE
With rates easing, Brooke Reynolds from Rapson Loans and Finance explains how to make every dollar work harder for your home goals.
With rates easing, Brooke Reynolds from Rapson Loans and Finance explains how to make every dollar work harder for your home goals.
As a mortgage adviser, I’m often the first to hear the collective sigh of relief when interest rates start to fall. Suddenly, those repayments feel a little less suffocating and the financial horizon looks a touch brighter. But while lower rates are welcome news, there is actually a lot more to think about than a slightly smaller weekly or fortnightly repayment.
If you’re already a homeowner, it’s tempting to let those savings slip quietly back into everyday life. Though there’s nothing wrong with a few extra dinners out and more room in the budget, if you can, consider keeping your repayments where they are. It’s one of the most effective, low-effort ways to get ahead.
By paying the same amount while your rate is lower, you’ll chip away at your principal faster and save thousands in interest over the life of your loan. Future-you will be very grateful.
A rate drop is also a good reminder to review your mortgage structure. Should you fix now? Should you split your loan? Locking in a lower rate can offer certainty, but there’s real value in maintaining flexibility as the market continues to shift. This is where personalised advice matters. The right structure isn’t one-size-fits-all, and small tweaks can make a meaningful difference over time.
For buyers, falling rates can feel like a golden ticket. Yes, your borrowing power usually increases, but so does everyone else’s. More buyers step into the market, competition ramps up, and the home that felt comfortably within reach last month may suddenly attract hotter interest. The best thing to do is to get your pre-approval sorted early, understand your true limit and don’t let cheaper money nudge you into paying more than a property is worth to you.
Lower rates also affect your savings behaviour. With less interest being earned on money sitting in the bank, it’s a good moment to check whether your savings accounts are still working for you. And if you’re building a deposit, make a habit of reviewing your KiwiSaver regularly. You want to ensure your fund choice and contribution strategy are supporting your home-buying goals, not quietly undermining them.
Falling interest rates are an opportunity, not a guarantee. They can open doors, but only if you walk through the right ones. Before you make a move, make sure you think about your strategy. In a shifting market, a plan is everything.
Master your mortgage
Brooke Rapson of Rapson Loans explores the many benefits of working with a mortgage adviser.
Brooke Rapson of Rapson Loans explores the many benefits of working with a mortgage adviser.
photo JAHL MARSHALL
Buying a home is one of the most significant financial decisions a person can make. With the variety of banks and mortgage options available, navigating the process can be overwhelming, especially for first-time buyers.
A mortgage adviser plays a crucial role in simplifying this journey, offering expert advice and access to a wide range of mortgage products. Here are some key benefits of working with a mortgage adviser.
1. Access to a wider range of mortgage deals
One of the biggest advantages of using a mortgage adviser is the ability to apply to multiple banks and other financial institutions. This is something most people would never have time to do on their own. Unlike going to a bank directly, a good adviser knows all the banks and the products they offer and can target your application to the most suitable institutions. This means they can find deals that best suit your financial situation, potentially saving you thousands over the life of your loan.
2. Expert guidance and market knowledge
Mortgage advisers have extensive knowledge of the mortgage market, interest rates, and lending criteria. They stay updated with changes in regulations, policies, and economic conditions that can impact mortgage approvals. Their expertise helps borrowers understand complex terms and conditions, ensuring they make informed decisions that align with their financial goals.
3. Tailored advice based on your financial situation
Every borrower has unique financial circumstances, from income levels and credit history to employment type and debt obligations. Mortgage advisers assess these factors and recommend mortgage options that match individual needs. Whether you’re a first-time buyer, self-employed, or looking to refinance, an adviser can find solutions tailored to your situation, increasing your chances of approval.
4. Time-saving and hassle-free process
Applying for a mortgage involves extensive paperwork, applications, and negotiations with lenders. A mortgage adviser streamlines this process by handling much of the administrative work, from gathering necessary documents to submitting applications on your behalf. This not only saves time but also reduces stress, allowing you to focus on other aspects of buying a home.
5. Support throughout the mortgage process
A mortgage adviser provides ongoing support beyond the initial mortgage application. They help with negotiations, liaise with solicitors and estate agents, and ensure a smooth transaction from start to finish. Even after securing a mortgage, they can advise on refinancing options or future financial planning. In conclusion, working with a mortgage adviser can save time, money, and stress while providing expert guidance tailored to your financial situation. Their access to exclusive deals, in-depth market knowledge, and ability to navigate complex processes make them an invaluable resource for homebuyers.