A retiree named Susan seeks safe, higher-interest savings options. She has no debt, owns a freehold house in Whanganui, and is renting in Wellington while planning to work. Her funds are in serious saver accounts and term deposits earning just over 4%.
RNZ consulted Dean Anderson of Kernel Wealth, who suggests options like on-call savings (low rates but flexible), term deposits (higher rates but locked funds), and cash or conservative managed funds (better returns with some risk). He warns that conservative funds can still lose value, as seen during COVID-19.
To avoid scams, Susan should only deal with registered New Zealand financial providers and avoid unsolicited investment offers.
The article also addresses bad credit and home loans. Mortgage adviser Jeremy Andrews says bad credit doesn’t mean rejection. Borrowers can boost their chances by checking their credit score (e.g. via ClearScore), providing context for past issues, maintaining clean banking records, and showing equity or savings. Non-bank lenders are an option, though costlier. Glen McLeod of Link Advisory adds that small defaults may be acceptable if the overall application is strong.
In summary, retirees like Susan can earn better returns safely, and bad credit borrowers still have home loan options with the right approach.
The Otago Times describes a Dunedin woman with $90,000 in KiwiSaver still can't buy a home in part due to strict asset caps. Key Mortgages explains when KiwiSaver can help second-chance buyers.
RNZ asked Jeremy Andrews of Key Mortgages whether first home buyers are better off making extra regular repayments or saving up a lump sum. Getting it right could save years off your total mortgage.
Key Mortgages advise 1news how homeowners could significantly reduce long-term mortgage interest by making simple repayment adjustments and reviewing loan structure regularly.
Key Mortgages comments with Tony Alexander and TMM Online the prospect of whether rising interest rates and global tensions are prompting a more cautious approach from buyers. Is mortgage demand softening as households take time to reassess affordability and market conditions?
NZ Banks are offering cash incentives to retain existing home loan clients. Jeremy of Key Mortgages summarizes with NZ Herald, whether to switch or stay depends on factors like break fees, equity, and overall costs. We can help and negotiate with your current bank to find which is the smarter move.
Key Mortgages recently joined Ryan Bridge on Newstalk ZB, to discuss the recent jump in mortgage rates and what it means for Kiwi borrowers.
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