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.
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.
PHOTOS JAHL MARSHALL
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.
Well advised
When it comes to money matters, expert guidance is more important than ever in today's tough economy.
When it comes to money matters, expert guidance is more important than ever in today's tough economy.
photo Jahl Marshall
As a lender for more than 20 years, Brooke Reynolds has certainly worked her way up through the finance world. She started as a full-time casual teller and worked in almost every bank position imaginable. She then went on to work as a mobile mortgage lender and later studied conveyancing. Today, she has extensive, well-rounded knowledge of the whole banking process, not just lending, and owns half of Rapson Loans and Finance in Tauranga. Brooke loves using her valuable and vast wisdom to help others. Here, she tells us why a financial advisor is an important asset to have, and what to expect from them in terms of advice, knowledge and assistance.
Financial advisors are the go-between with individuals and the banks/lenders. They get to know you and understand your needs and then relay that information to the lenders. The relationship you form is important as the more they know their clients, the easier it is to achieve exactly what you want. Everyone has different needs − no two people are the same − and your adviser needs to be able to manage that and not take a ‘one fits all’ approach.
But can’t I just do that myself, you ask? Yes, absolutely you can. If you don’t mind making the appointments with lenders, taking time off work and then following up with further information and research. It all costs you time and effort, and then if they say no, what do you do? Advisers are able to go to multiple lenders and will be able to tell from the conversations you have had which banks have the policies and products that would best suit your situation. Banks have different policies and products. They are not all the same. Advisers know this and can navigate it all for you.
The majority of the time, it costs you nothing to consult a financial adviser; however, in the situation where you are using a second-tier lender/commercial lending/equity lending, there may be a fee. Most of the time this can be capitalised onto the loan. The banks will also claw back any commission paid if the loans are repaid and closed prior to 27 months (this varies with lenders, some are less) but this is a conversation to be had at the time of engagement.
Financial advisers are highly regulated. Absolutely everything must be disclosed, from what we are paid, to complaints and clawbacks, and so on. Our files are reviewed and we could get a visit from the FMA at any time. This includes any email correspondence, text messages and phone calls.
All in all, financial advisors are a valuable resource and tool to lean on for knowledge, advice and help with applications. Look out for my column in the next issue if you’d like to learn about different types of loans and the importance of structure.
Growing your future
When it comes to securing your financial future, growth assets and collaboration go hand in hand.
When it comes to securing your financial future, growth assets and collaboration go hand in hand.
Words Owen Cooney / Photos Jahl Marshall
In times of uncertainty and fear, it’s hard to know where your money should go. All this talk about inflation can be confusing but by taking a step back, and looking at the bigger picture, you can get a better understanding of where your money is best kept in hard times.
In times of rising inflation, commercial investment can be a wise move. Even when the yield on a commercial property remains the same, your dollar is still worth a dollar. The bank’s dollar, on the other hand, is worth less and less with inflation.
Growth assets, such as commercial investment, will protect the spending power of your dollar. Long leases hold through to the next cycle, and so being exposed to growth assets is a game you need to be playing if you hope to grow your wealth long term.
However, with all of today’s challenges, it becomes hard to even create a wealth plan and build a future in the first place. That’s where a collaborative approach can work. Joining a private collective means you join a group of like-minded individuals who jointly purchase, then lease, the building in question.
There are many advantages to owning a share of a building using this model, compared to owning the building outright.
Firstly, the collective admin team does the legwork in that they find high-quality properties worth investing in. Secondly, they ensure the numbers stack up and the right contractual arrangements are in place to generate a profit from the get-go. And, thirdly, they organise reliable tenants and take care of all bank financing, lease arrangements and financial reporting.
If you're keen to connect with our network of investors and potentially join a collective when the right opportunity arises, head over to the Classic Collectives website and schedule your own 15-minute discovery call. There are no obligations to join our syndicates; we’re simply here to answer your questions.
Being able to ask honest questions and get straight answers is perhaps the best investment of all. It only costs your time.
Helping kiwis supercharge their wealth
Ask Kristen Lunman when you should start investing, and she’ll tell you, today. Thanks to Hatch, the digital investing platform she co-founded, the world’s share markets are now more accessible to Kiwis than ever.
Ask Kristen Lunman when you should start investing, and she’ll tell you, today. Thanks to Hatch, the digital investing platform she co-founded, the world’s share markets are now more accessible to Kiwis than ever.
What does wealth mean to Kiwis? Lunman says that for her customers, it means having a full life that balances travel, work, family, friends, and health. Lunman saw limited options for ambitious Kiwis to grow their wealth and, as a woman balancing career, children and life, she felt the pain. It motivated her to start Hatch, which delivers a straightforward way for people like her to get their money working as hard as they do to earn it in the first place.
“We launched Hatch on a mission to help Kiwis supercharge their wealth and build good money habits,” says Lunman. “Term deposits and savings are no longer attractive options to grow wealth thanks to low interest rates and inflation.” With Hatch, Kiwis can now own shares in over 3500 US-listed companies and funds on the intuitive and straightforward platform.
“Property’s great, but you need a large amount of capital to get involved, and then you’re locked in. Building a business is another way to grow wealth but making a success of it is hard work and high risk, and again, once you’re in, you’re in.”
Owning shares in world-class companies and funds has always been an opportunity reserved for the financial elite, something that never sat right with Lunman. She saw a way to offer a fresh new approach to self-directed investing that’s designed for newbies to experts.
“We’ve built a simple, straightforward experience to help you take control, wherever you’re at. With Hatch, it’s not hard to back the pioneers that are shaping our future and benefiting from their success. From Netflix to Zoom, Tesla and Vanguard, when you approach investing like you’re backing a business or industry, it breaks down the mental barriers to getting started.”
It takes about three minutes to open a Hatch account. After transferring money into your account, the next morning, you’re ready to buy shares in companies and funds in the world’s largest and most liquid share market. It’s that simple.
“We want people to be shareholders in businesses because it’s a tried and tested way to meet financial goals over the long term. We’re not about trading stocks on a whim and trying to predict fluctuations in the markets. We want to help Kiwis build sustainable wealth over time, through great financial habits.”
For Lunman, the best investors are mindful investors. This means considering why you’re investing in the first place. This level of self-awareness helps you stay calm and make smarter choices. “Being mindful means you don’t panic when your shares fall in value. There are always going to be ups and downs in share prices, but over time, the highs in the markets should outweigh the lows.”
As part of Kiwi Group Holdings alongside Kiwibank and Kiwi Wealth, Hatch has grown and benefited from the backing and wisdom of one of New Zealand’s most trusted financial names whilst staying completely autonomous. And the Kiwi family has benefitted from a fresh, innovative new brand. Win-win.
Buying a slice of a company or a pioneering industry like fake meat or cannabis and watching it grow and shape our future is exciting. Shareholders in the likes of Apple, Tesla, Beyond Meat and clean energy companies are looking ahead and hoping to benefit from megatrends that are changing the way we live. Why not join 65,000 other Kiwis and to do the same?