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How long will you be paying your mortgage


If you’re not convinced that life insurance is necessary check out this Prosperity e-Update and have a think about what that might mean for your family. You’ll also find loads of great savings tips and an interesting insight about what a few extra years of a mortgage could will cost you. Check it out. 

Who depends on you?

If you’re at all like any of us in the Prosper offices you know the deal …  Go to work, pay the bills, plan for the future and do whatever you can to help fuel a happy and comfortable life for our loved ones. But what would happen if you were no longer around?
It’s something none of us want to think about, but the fact is it could happen to any of us – in New Zealand there’s an average of one death every 16 minutes (1).
Ask yourself these three questions:

  • Have you made plans to ensure your family or business can survive without you?
  • Could your family cope with paying the monthly bills or making mortgage repayments without your salary?
  • Could your business continue without your input and expertise?

If you answered no, or even hesitated in the slightest, you need life insurance.
If the unexpected happens life insurance is there to help safeguard your family’s future, providing funds to help pay the mortgage and cover those day-to-day living expenses that quickly add up. This means that providing food, clothing and schooling won’t be an issue. In the event of a death, your family can be protected from the significant cost of a funeral and related expenses and you can also protect your retirement savings with a lump sum payment designed to ensure your nest egg is not put in jeopardy.

There are myriad of life insurance options out there, with various benefits and the scope for all sorts of flexibility. If you want to explore the best set up for your situation get in touch with the team at

1) Statistics New Zealand, Population Clock, June 2012.

How long have you got your loan for?

The word ‘mortgage’ is synonymous with a long length of time – in most cases it’s a period so lengthy the end is hard to fathom … but it is certainly worth considering, as the difference between a 20 and 30-year home loan is remarkable.
A Kiwi borrower buying a median-priced $416,000 home with a 20 per cent deposit on a floating 6 per cent interest rate would pay $717,965 over the life of a 30-year loan, according to Sorted's mortgage calculator. If they chose to pay off their mortgage over a 20-year term they could save $146,135.
There are a number of ways to repay your loan quicker and save you thousands or hundreds of thousand dollars in interest. Pay a little extra on a regular basis, make lump sum reductions or even adopt an approach where your whole salary goes into your mortgage and you only take out what you need when you need it. Talk to the team at Prosper to explore the best options to meet your needs.


Nine savings tips that will help you get your first home

With all the current election banter going on the challenges associated with buying a first home are front of mind for many. As a result the NZ Herald recently published an insightful article about the most effective ways to save for your first home. The article featured some helpful tips that we thought would be well worth sharing – check them out below:
1. Sort your finances
Short-term debt (think credit cards, store cards, car finance) is not a good look when you apply for a home loan. Try to pay off all your short-term debt and build up an emergency fund before you begin saving.

2. What are you saving for?
Having your goals written down and placed somewhere visible will serve as a helpful reminder of what you are working towards. So when you're tempted to splurge, you might stop and think twice.

3. Stick to a budget
If you know where your money goes, it's easier to keep track of it, and ensure you are saving as much as possible. There are many budgeting advisors and information, but it takes real commitment to keep on top of it.

4. There's no time like the present
You don't need to wait for your pay-rise or for the baby to be born, or anything you can start saving today by making simple and practical lifestyle changes.

5. Determine how much you can afford
Some experts believe a mortgage should be around 25-30% of your income. It's important not to over-extend yourself so you are still able to meet your daily obligations and save for retirement.

6. Paperwork costs
Building inspections, LIM reports, lawyer fees insurance and rates need to be considered in your savings plan. It's upsetting to spend money on reports if you don't end up purchasing a property, but this due diligence is an area where you don't want to cut corners.

7. When you save, you're paying yourself
Do this first. Sort out an automatic payment to yourself so that as soon as your payment comes through, some money is put away for savings. Expenses such as insurance, rent and power should be covered and anything that's left can go on discretionary spending.

8. Cut back on small luxuries
Taking your lunch to work and drinking less takeaway coffee will soon add up. Also, reign in your spending on things like gifts. Friends and family understand how hard it is to save, it's not necessary to splurge on expensive gestures.

9. Little luxuries are still important
This may seem to conflict with the above point, but factoring little treats into your budget will help keep you on-track. If you try to live off only the essentials in order to save the rest, chances are you'll splurge and use far more of your savings than if you had intermittent luxuries to look forward to. After all, life is for the living.

Lastly, don’t be afraid to ask for help. There is plenty of budgeting advice and resources at your finger-tips. Get in touch with the Prosper team and let us point you in the right direction.