Nice, thank you for this. I have so much to learn

Thanks Mate, you explain everything so clear

@mortgagehq

2 жыл бұрын

Thank you for your encouragement!

Thanks Blandon. I need to set up my revolving credit tomorrow. will call ANZ

@mortgagehq

Жыл бұрын

Glad to help! We are always ready to help if needed: 0800 733 462 or support@mhq.co.nz

5:26 Awesome Video Blandon, i have a question please, at 5:26 you said take the money from the revolving account and pay it towards 450k so the balance will now be 400k owing (Fixed) + 50k (revolving) as you just transferred that to 450k (initially) that was owing in fixed right? Sorry just bit confused, as you say now the balance owing will be 400k, but if you transfer 50k from revolving to fix to bring it down to 400k from 450k the 50k u had is now having void in revolving right? Thanks again for your information

liked commented and subscribed,

Thanks for video! Question. When your fixed mortgage term ends and you are ready to pay lump sum off your fixed using your revolving credit, when you re-fix your mortgage do you reduce the term of the mortgage and just maintain your existing monthly repayments? As the fixed mortgage has the interest front loaded, does reducing the term have any negative effects? Thank you

@mortgagehq

3 жыл бұрын

Hey Dan I see this message 2 months later!! It’s actually quite hard to answer your question without understanding your situation and objectives. But reducing term isn’t a bad thing, just mean you are increasing your commitment which kinda defeat the purpose of revolving credit(if you are good with money).

Thank you, very well explained. Just one thing, in the revolving credit system, once you have payed off your floating loan, how can you put that against your primary fixed loan. Using your example of a loan of 500k, 50k in floating and 450k in fixed, the 50k was after all a loan, so once you pay it off, by taking it back you are making your 50k floating loan come back. From my understanding, you are saying you can make a 50k floating loan pay off 100k in debt. Where did I go wrong?

@mortgagehq

Жыл бұрын

Best to get a mortgage adviser to help you with this! If you don't have one, check out mhq.co.nz - it's free! 😄

@frasay

9 ай бұрын

Ah I was thinking the same thing, what Blandon is saying is, you can pull the 50K out of the offset, and pay it into the fixed amount, bringing that down to 400K, but then your offset account will once again be a 50K loan.

Excellent video with clear concept. However, the reality is the revolving interest rate is way higher than one year fix rate, like anz 4.55% vs 2.29% currently. How can we leverage revolving credit facility in this situation? Is it still worth doing?

@mortgagehq

3 жыл бұрын

Kiwibank is 3.4%, and normally you wouldn't have a large chunk on revolving, just a small amount so the interest difference is negligible as long as you are putting a good portion of your income into revolving credit. I would encourage you to watch the full explanation from this masterclass. mhq.co.nz/lp-mortgage/stage-1-masterclass/

is having a fully paid revolving credit facility good to use towards a rental property?

@chriscostigan4372

3 жыл бұрын

Whats the difference between BNZ offset account and BNZ revolving credit? which is better?

@mortgagehq

3 жыл бұрын

Those are good questions Jacob. Revolving credit paid off - it is hard to say without understanding the full situation, Ie how much emergency funds you need, how much is the deposit, what is your borrowing capacity. Those can be reviewed with a mortgage adviser, if you need help then go to mhq.co.nz and complete a mortgage snapshot. Second for revolving vs total money. Try this video. kzread.info/dash/bejne/eJV2k9uPc5utpLg.html

whats that cardigan, I kinda like that cardigan

When can you transfer your fixed mortgage into RC? Can you do this at anytime or does it have to be when you refix mortgage? I.e when your fixed terms comes up? We already have revolving credit and want to be able to transfer our mortgage amount at anytime. Is this possible?

@mortgagehq

2 жыл бұрын

Yes you can but requires a full application which is not the most efficient way to do this. Talk to an adviser when you are ready :)

I'm not sure if I followed correctly, but you can't use the revolving account to make a lump sum payment on the fixed term loan at the end of the year (around min 5:30), because they are both different debts. What I understand, is that, once reached a positive balance in the revolving facility, you can open another revolving facility with -50k balance, and that's coming out from the fixed term, which is I guess what you've meant

@mortgagehq

3 жыл бұрын

When you have cash accumulated in the revolving credit, this fund is accessible at any time. So you can take this fund out to pay a lump sum towards the fixed mortgage when the term is up without penalty. This enables you to start piling cash in the revolving credit again. Hope this helps.

@micah864

3 жыл бұрын

@@mortgagehq Is it true that you would not necessarily be paying more interest in the long term by having this set up? Not sure I get why anyone wouldnt do this if that was the case.. makes me think i'm missing something! what is the down side

@yichispiritual

3 жыл бұрын

@@micah864 people do this when market rate suddenly goes down while they locked in the higher rate, such as now. The down side? Complicated accounting.

@emanuelpitas6250

2 жыл бұрын

@@mortgagehq When you take out the accumulated $50k cash from revolving credit to pay a lump sum towards the fixed mortgage you end up with a -$50k in the revolving credit again and -$400k in the fixed term, is this correct ?

@SiD_420

2 жыл бұрын

@@emanuelpitas6250 Same question from my side too