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.

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.

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Navigating your loan

Thinking about a home loan? Brooke Rapson of Rapson Loans and Finance reveals why a mortgage adviser can save you time, stress and money, while finding the right loan for you.

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When you're looking at getting a home loan, working with a financial adviser can make a huge difference. Instead of going straight to a bank and being limited to their products, advisers have access to a wide range of lenders, including the big banks, non-bank lenders and even some specialist providers. That means they can compare a bunch of different mortgage options and help you find one that actually suits your situation.

They also know the ins and outs of lending policies, so if you've been declined or hit a wall with a bank, they might be able to challenge that decision or clarify things to get you across the line. It’s not just about finding a loan. It’s about finding the right one and getting it approved.

Advisers take the time to understand your financial goals, your current situation and how comfortable you are with risk. Whether you're buying your first home, refinancing or investing, they’ll tailor their advice to fit your long-term plans. And because they’re not tied to any one bank, they’re working for you and not trying to sell a specific product. They’ve got access to all providers and all products, so you’re getting a full view of what’s out there.

Another great thing is that they stick with you beyond the initial loan. When your fixed rate is up for review, they can help you reassess your options, refinance if needed or even plan your next move if you’re thinking about investing. They’re a solid resource to have in your corner throughout your financial journey.

The best part is that most mortgage advisers are paid by the lender, not by you. So you get all that support and expertise without having to fork out extra fees. That said, it’s always good to ask how they’re compensated, just to keep things transparent.

In short, having a financial adviser on your team can save you time, stress and money. They know the market, they know the process and they’re there to help you make smart decisions. If you're thinking about a home loan, chatting with an adviser is definitely worth it.

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Cracking the first home code

Buying your first home doesn’t have to be confusing. Brooke Reynolds from Rapson Loans and Finance says there are more loan options available than most people realise. With the right advice, you can find a solution that fits your budget, deposit size, and property goals.

If you're a first-home buyer, you might be surprised by how many loan options are actually available to you. It’s not just one-size-fits-all.

Here are three main types of loans to consider, along with how each one works:

1. First Home Loan (via Kāinga Ora)

Some banks offer First Home Loans in partnership with Kāinga Ora. The bank handles the initial assessment using its own lending policies, and then Kāinga Ora gives final approval for both the loan and the property you're looking to buy.

It’s important to note that just because Kāinga Ora gives the green light doesn’t mean the terms, such as how much you can borrow or the interest rate, will be the same across all banks. These can vary depending on the lender.

The minimum deposit is five percent, and the deposit can come from personal savings, a gift, or proceeds from selling an asset. Not that you’ll need to meet Kāinga Ora’s eligibility criteria, which can be found at kaingaora.govt.nz

2. 10% Deposit Home Loans

These are widely available through all major banks. While banks may pause pre-approvals based on application volumes, you can still proceed by making an offer on a property. Once your offer is accepted, the application becomes a live deal and can be assessed. Some lenders still offer pre-approvals for auction purchases. The minimum deposit is 10 percent, and at least five percent must be from genuine savings (e.g. KiwiSaver, cash savings, investment funds, or sale of an asset).

The remaining five percent can come from a gift or a deed of debt from family. Bank rates vary between lenders, however the rate will be higher than a 20 percent deposit loan. Some banks may offer a $5,000 cash-back for first-home buyers.

3. 5% Deposit Loan (Non–Kāinga Ora)

There’s at least one bank offering five percent deposit loans for borrowers who don’t meet Kāinga Ora’s criteria. This loan requires genuine savings for the full five percent deposit. Pre-approvals are not offered, but live deals (including auction purchases) will be assessed. Availability is subject to bank capacity – some may pause new applications from customers not already with the bank.

Important to note for all loan types

A professional property valuation is required for all three loan types. Make sure your offer includes enough time for both the assessment and valuation. These loans are not available on interest-only terms – you’ll need to make principal and interest repayments from the start. Navigating your first home loan can feel overwhelming, but a trusted mortgage adviser can guide you through the process. Ideally, choose one with access to all lenders, as borrowing limits and interest rates vary significantly between banks.

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Transform tomorrow

Facing a health scare without any insurance cover in place motivated Diana McIntyre to become an insurance specialist with Rapson Loans & Finance, to help others avoid the same shock.

Life can throw you curveballs. When my brother died suddenly, his foresight in taking out life insurance saved our family from financial heartache on top of grief. But when I faced my own health crisis, I did so as a solo mum and breadwinner, with nothing to protect my financial security.

Many Kiwis insure their homes and vehicles but we are much more reluctant to insure our most valuable asset – ourselves. I now know that health, trauma and income protection insurance can literally save the day.

A good health insurance policy will give you access to non-Pharmac drugs without having to sell your home or beg others for help via Givealittle. And it will ensure you are seen quickly without languishing on public waiting lists while your condition worsens.

According to Health New Zealand / Te Whatu Ora, 180,000 people were waiting for a first specialist appointment last December – and 68,000 of those had waited longer than the 40-day target. New Zealand’s health system is overloaded and focused on critical need. But you don’t have to be critically unwell to be debilitated.

I am privileged to work with clients every day to cover their risks while balancing their budget. A solo mum in her late 30s was recently diagnosed with breast cancer. As her household’s only financial provider, her $100,000 trauma cover financially saved her.

Another local couple in their 40s, with children from previous relationships, took out a joint life insurance policy. Less than 12 months later, he died. But the insurance payout meant his new partner could continue living in their home, and his children received an inheritance.

While no-one likes to think this could happen to them, the reality is it could. In today’s economy, I can help you sustainably manage your premiums. If you’re under 45, it’s worth taking out some ‘level’ of trauma or life cover which won’t increase each year in line with your age. It will give you more certainty on cost and help you plan for the future.

Once you’re over 50, right when you’re likely to need cover, your premiums will be sustainable. If you’re older, you could consider increasing your health insurance excess if you need to reduce your monthly premium.

My best advice is to sit down with a knowledgeable insurance specialist such as myself. I can take a holistic and pragmatic look at your circumstances and help you strike the right balance between cover and cost.

It’s important to set up insurance that meets your needs now, as well as strategically looking ahead to the future.

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