COVID-19, in an uncertain environment could you pay your mortgage?
Interest rates at an all-time low
With COVID-19 already affecting markets around the world, the Reserve Bank of New Zealand on the 16th March has taken an unprecedented step and reduced the OCR from 1% to 0.25%. Most of the major banks have reduced the floating or flexible rates on home loans but the fixed rates of interest have yet to be reduced. With these changes made It may mean home lending rates go down to 2.99% fixed for one year.
Taking advantage of such low rates of interest can mean more money in your pocket. This can be done either by reviewing your existing loan, negotiating a new rate of interest whilst refixing your loan, or taking a new loan.
Review your home loan
With any big shifts in the market, it’s a great idea to review your financial position and your home loan. There’s no one-size-fits-all approach – the structure of your home loan can be tweaked to best suit you. The most important first step is to get in touch with an expert adviser. They can work with you to determine the best way forward to manage your finances in the event of unforeseen situation arising. This ultimately depends on your unique situation.
Consider mortgage and income protection
Having mortgage protection insurance in New Zealand means you have another notch in your belt.
Both mortgage repayment and income protection insurance can help you to tide over in the unforeseen situation if you are unable to work either due to sickness or you have to stop working for a period of time due to job redundancy. More information in this regard is available from your insurance adviser.
Personal Situation changed?
When the unexpected arises, it can make a significant impact on your finances. It is always a good idea to have life, income protection and other personal risk insurance measures in place to help reduce the burden and stress it can place on your life. It also means happier peace of mind and a bridge during this time.
Global Finance is always ready to help you
If the COVID-19 crisis is making you feel worried about your financial future, you’re not alone because so far around 170,000 people have been affected all over the world and almost 4% have died. Still, there is no available vaccine to treat COVID-19.
Despite all these facts, you are not powerless. Please, get in touch. Global Finance can take into account your whole financial picture to ensure you have the right protections in place, and that your home loan is structured to support you through this tricky time.
Getting in touch with a mortgage and insurance adviser today can make sure that you always remain in the best position possible. Mortgage repayment Insurance means repaying your mortgage and meeting other living costs when you are not able to work.
Need help reviewing your home loan and getting specialist insurance advice. Ask the experts at Global Finance for help.