Are you looking to mortgage or refinance your home and are frustrated looking for the best rate? Try glimp's FREE and FAST mortgage calculator to get the best rates in New Zealand! (call to action)
You may have heard of glimp’s platforms for use in their easy to navigate, quick results when searching for a broadband provider or power company. Their newest, genius idea is a mortgage calculator that helps you find the best place to mortgage or refinance your home for a good rate. Here are answers to some of the most likely questions you may have about the new tool and why it will simplify your life in many ways.
A mortgage is used to allow a person or business to purchase large plots of real estate without paying the whole amount upfront. The individual purchasing the loan from a bank will be required to pay the amount back in a set of predetermined terms. The terms fluctuate depending on the bank, length of mortgage, interest rate and more factors. A mortgage is essentially a loan used to pay for a home or property.
Anyone looking to own property, be it a house or office building, should consider a mortgage. A mortgage helps you to continue to live the lifestyle you want while affording the luxury and freedom of your own property. It is important to recognize that individuals without the ability to pay back a loan should not apply for one.
Glimp’s brand new loan calculator helps you to search hundreds of banks and hundreds of mortgage rates. By doing this ahead of time, the process is easier and much faster than if you were simply searching on your own. Glimp streamlines the process for you and lays out the loan calculator results in an easy to navigate, easy to understand way. You can be sure that every option you are given is complete, reliable and affordable.
There are a few things you should know before using the Glimp mortgage payment calculator.
First - Are you looking to mortgage or refinance your home? The difference is in a different rate and usually different terms of the second loan. When you refinance your loan you can ensure that you A) have an existing loan B) need to apply for a new loan C) your new loan will pay off your first loan and D) you now have a new loan that you need to repay under those new conditions.
A mortgage is simpler and means you are applying for your first mortgage for the given property.
When you opt to refinance there are usually a few reasons to do so. Many people or businesses choose to refinance to save money with your new interest rate. There can also be a lower loan term when you refinance your mortgage. Other reasons are to pay off the loan or to change the loan type all together.
Second – Glimp will ask you what deposit you will pay and how much the total loan will be OR it will ask you details about your existing loan, depending on your answer to the first question. Answer these questions as detailed as you can to get the most complete answer out of the mortgage payment calculator.
Third – Hit calculate and that’s it! Glimp will produce your results in an easy to understand platform. The beauty of the Glimp service is the ability to change the results if you decide you want to change any of the factors with just the click of a button. Change your interest rate amount, length of loan or even deposit amount easily and see new results quickly; you don’t even have to go backwards on the search page, to toggle between choices use the buttons on the top of the page.
Some of the top results you may receive are HSBC, ASB, Bank Direct, BNZ and Sovereign but the list is extensive. Other Glimp endorsed banks are:
When you receive your results, you may be confused that some banks are listed twice. The reason for this is the different rates. For example, TSB Bank may be listed twice, both for 3-year loans but one at an interest rate of 5.15% and one at a rate of 5.45%.
Say you are mortgaging a home for the first time. Select “mortgage” from the first page of the Glimp loan calculator.
Next, enter the details “How much you would like to borrow?” and “What is your deposit?” The minimum borrow is 700,000 and the minimum deposit is 100,000. For the sake of this experiment, to make things easy, 500,000 will be the amount borrowed and 100,000 will be the deposit put down. Once the information is plugged in, hit submit (seriously, it’s that easy).
You will then be taken to a page with all of your options as well as toggle buttons at the top of the page to adjust your results. Use the buttons to change the amount you want to borrow, the number of years you will promise to pay back the loan in and the fixed mortgage rate years (1-5 or “Floating” meaning the rate does not have a fixed rate of interest).
Your results for this experiment are as follows, in order of lowest to highest rate:
As you can see, there are a number of options generated by Glimp’s mortgage calculator.
It’s important to consider many factors when choosing an individual mortgage from a long list of possibilities.
Consider how long you will be at the property you are intending to mortgage and your occupation landscape. Is it probable that you will continue to hold your position in your job for the length of your mortgage? Are you considering a new career that may mean a pay cut? Or maybe even a possible promotion and therefore raise? These sorts of questions are important because they help you determine exactly how much flexibility you have in your mortgage plan.
As you are sifting through the options, consider each bank’s customer service reviews and communication policies; if you are locking yourself into a long mortgage plan, you should feel comfortable with that bank. Carefully research each bank’s policies on communicating with customers including answering customer calls and emails. This can make a big difference if you have a problem with your plan, payments or decide to refinance in the future.
One easy way to find this out is by gauging how fast a bank answers your application to apply for a loan.
Consider your credit score. Your credit score is an extremely important factor in determining whether a lender accepts your application for a mortgage. A credit score is something that you acquire over time as you repay payments on a credit card or other loan. This indicates to your potential lender the ability you have to repay a loan. If you have a lower credit score, this means lending to you could be risky. In contrast, the higher your credit score the better the chances are that you will repay your loan on time. This will also give you better bargaining power when you argue the conditions of your mortgage interest rate and other factors of the loan.
Use services such as Centrix, Dun & Bradstreet or Veda Advantage to determine your credit score for FREE (or for a small fee if you need it fast). It is actually advised to use all three programs if you want an accurate representation of your credit score.
Consider additional fees lenders may try to add on to your mortgage plan. Asking about closing fees, loan origination, obtaining your credit report and application fees are a good start. Banks will unsurprisingly try to get as much money out of you as possible. Asking these questions ahead of time will help you factor them into your budget or choose a plan with a lower number of additional costs, overall.
Consider the possibility of buying points. Buying points allow you to lower your interest rate, if it makes sense to do so. For example if a plan offers a buying point valued at 1%, then buying a point would mean reducing a $200,000 loan by $2,000. Not all lenders will offer this so asking about it ahead of time can make a difference.
Applying for a mortgage is understandably daunting and difficult to navigate. Making the wrong decision on which lender and mortgage plan to choose from can make a big impact on your financial status for many years. Using a mortgage calculator is an important tool to finding exactly the right plan for you.
Not only is Glimp’s calculator one of the easiest and most effective tools for New Zealand residents, but it is also FAST and, most importantly, FREE. It doesn’t get much better than that.
Also consider using Glimp’s unique calculators to help find a credit card, broadband provider or power provider.
“Was really impressed with the level of service and assistance I received. Was quick and easy and I was provided with a recommendation for the best plan and option for me. Thanks for your help [Michael], I will be recommending you to friends and family.” – Rick
“The whole process we quick and seamless. It couldn't have been any easier. Definitely would recommend. Thanks for putting the power back to the consumer!” - Colin
“Fantastic website to find the best deals out there. Easy to use and saved me trawling through various providers websites to get the best deal, even got a cashback from glimp to top it off. Thanks so much!” – Vanessa
Try all of Glimp’s great tools today to save time, money and stress searching for utilities and loan providers today. (Call to action )
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