In the third podcast episode of the OneRoof and Cooking The Books special look at the housing market, host Frances Cook looks at the tricks to negotiating a mortgage which could save you thousands.
Saving up for a house is one thing, but then actually paying it off is entirely another.
A mortgage interest rate may look small, with some rates currently under 4 per cent.
That's an incredible deal, but there's a reason the banks are willing to give it to you.
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Over the course of a 30-year mortgage, that 4 per cent interest rate adds up several times over.
In fact, by the time you take into account changes in interest rates over that time, the general rule of thumb is that you pay double for your house – once for the purchase price, and then the same amount again in interest payments to the bank.
So you want to be smart about this from the beginning, because it means a difference of literally tens of thousands of dollars, maybe more.
Happily there's more than one trick you can keep up your sleeve to make sure you end up on the right side of the deal.
For the latest Cooking the Books podcast I talked to Ashley Church from OneRoof.co.nz and Lesley Harris from the First Home Buyers Club.
We discussed whether you should use a mortgage broker, how to find the best rate and how to plan ahead for how interest rates could change in the future.
For the episode, listen to the podcast below or watch the video at the top of the article.
Listen to other episodes in the series:
Episode 1: Buy v rent
Episode 2: Saving for a deposit
Episode 4: The power of location
