Page 2 - Winter Edition 13 - August 2019

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Life Property
P A P A K U R A

is happily brought to you by Chris Grantham

0274 960 959 c.grantham@barfoot.co.nz

• Or split it. You can split your mortgage between fixed and floating rates. Or you can
fix two parts of it across two different fixed periods. This reduces the risk of a sudden
payment shock when you come off a fixed mortgage. Mix-and-matching fixed mortgages

to add a third small chunk on floating also allows you to make extra payments.

• The other alternative is revolving credit, which is like a mortgage-sized overdraft.

When your wages or salary are paid into this account, the outstanding sum of the
mortgage is reduced for part of the month, so you pay less interest. Warning: If you’re a

spender, step away now. Revolving credit is dangerous. Only born savers should use
them.

Tricks to pay your mortgage off faster

• Making extra payments on your mortgage is very effective. Even one coffee at a time
adds up to tens or even hundreds of thousands of dollars over the life of a mortgage.

Double check that your lender doesn’t have a minimum sum for extra repayments.

• Pay fortnightly, not monthly. Divide your monthly mortgage payment by two, then pay
that sum fortnightly. That way, you’ll make one extra payment a year, because there are
26 fortnights in a year, rather than 24.