Finance

Mortgage Tips: Achieving Your Financial Goals in the New Year

Written by Admin | May 11, 2025 11:31:42 PM
Now is the perfect time to look at your financial goals, but sticking to those resolutions can be a challenge. Whether it’s securing your dream home, refinancing your mortgage, or creating passive income through a property investment, the journey to financial success starts with expert advice. Let’s break down how to make your New Year financial resolution stick with some key mortgage tips that will get you started!
 
  1. Set Clear, Specific Financial Goals

The key to sticking to your financial resolutions is setting clear, measurable goals. Vague resolutions like “I want to save more” or “I want to buy a house” aren’t as effective as well-defined objectives. Instead, set specific, time-bound targets like:

“I will get pre-approved for a home loan and aim for a 10% deposit for my first home purchase by the end of the year”

“I will speak to a Financial Adviser to discuss my options of investing in property by mid year”

Having concrete goals in place will make it easier to take action and measure your progress as the year unfolds.

  1. Take Charge of Your Credit Score

If buying a home is part of your 2025 plan, one of the most important steps is to improve your credit score. Your credit rating significantly impacts your ability to secure a mortgage and the interest rate you’ll be offered.

Here’s how you can improve your credit score in the early months of the year:

  • Check Your Credit Record: You can check your own credit rating at https://www.govt.nz/browse/consumer-rights-and-complaints/debt-and-credit-records/check-your-own-credit-report/
    Make sure your report is accurate, and take note of any areas that need improvement.
  • Pay Down Debt: Focus on reducing your existing debt, especially credit card balances, which tend to have high interest rates. Less debt means a better credit score.
  • Avoid Missed Payments: Set up automatic payments for any existing loans or credit cards to avoid late fees, which can harm your credit score.

Once your credit score is in shape, it will be easier to secure a mortgage pre-approval at a competitive rate when you’re ready to buy.

3. Get Pre-Approved for a Mortgage

If you’re planning to buy a home in 2025, mortgage pre-approval should be one of the first items on your financial to-do list. Working with a Financial Adviser to get a pre-approval letter not only tells you how much you can borrow, but it also shows sellers that you’re a serious buyer.

Here’s how you can get started:

  • Choose the Right Financial Adviser: A Properli Financial Adviser can help you navigate the complex NZ mortgage market – we’ll compare rates from multiple lenders and guide you to the best option for your situation.
  • Understand Your Budget: Your mortgage pre-approval is based on your income, debt, credit score, and the amount of deposit you have. It’s essential to get clear on your budget to avoid over-stretching yourself.
  • Consider Your Loan-to-Value Ratio (LVR): New Zealand’s Reserve Bank has specific guidelines around LVR, so make sure you understand the minimum deposit required for your home loan.

Pro Tip: Pre-approval is typically valid for 3-6 months. It’s a good idea to secure this early in the year so you can start shopping for a property when the time is right.

  1. Refinance Your Mortgage for Better Rates

If you’re already a homeowner and your mortgage is nearing its renewal period, 2025 might be the ideal time to refinance. Interest rates can fluctuate, and refinancing your mortgage could save you significant amounts over the long term.

Here’s how refinancing can help:

  • Lower Interest Rates: Interest rates might have dropped since you first took out your mortgage, and refinancing could secure you a lower rate and reduce your monthly repayments.
  • Consolidate Debt: Refinancing can also be used to consolidate high-interest debt into your mortgage, which can help you manage payments more easily.
  • Fix Your Rate: If you’re concerned about interest rate hikes in the future, refinancing to a fixed-rate mortgage can provide stability and protect your repayments.

Pro Tip: Before you refinance, it’s a good idea to speak with a Financial Adviser to understand the best options for your current financial situation.

 
  1. Automate Your Savings and Payments

One of the best ways to stick to your financial resolutions is to make saving and budgeting as easy as possible. Set up automatic transfers to your savings or investment accounts so you don’t have to think about it. This also helps build an emergency fund, which is crucial for financial security.

  • Set Up Automatic Mortgage Repayments: Make sure your mortgage repayments are set up on autopilot to avoid missing payments and accruing late fees.
  • Start a KiwiSaver Contribution: If you don’t already have one, starting a KiwiSaver account is an essential step in building long-term wealth. Even small contributions add up over time.
  • Emergency Fund: Aim to save at least 3-6 months’ worth of living expenses in an emergency fund. Set up automatic transfers from your main account to a savings account each month to reach this goal.
  1. Get Expert Advice

Financial resolutions can feel overwhelming, but you don’t have to go it alone. Seeking advice from a Financial Adviser can help you make well-informed decisions and stay on track. A Financial Adviser can:

  • Help you understand mortgage options and secure the best rates.
  • Review your position, and recommend steps to save you money on repayments.
  • Advise you on retirement planning and how to balance paying off your mortgage with saving for the future.

Whether you’re buying your first home, refinancing, or wanting to invest in property, speaking with an expert can get you started on your journey, sooner – whatever your destination.

Shall we get started? Book time with an Adviser today, and get started towards your destination. Let’s go!
View full post