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Online Mortgage Brokers Explains What A Table Mortgage Is

Online Mortgage Brokers Explains What A Table Mortgage Is

Words by
Jordan Cameron

Did you know that most New Zealand home loans are table mortgages? If you are wondering what this means and how you can benefit from this type of mortgage, you have come to the right place.

Online mortgage brokers explain what a table mortgage is and what the advantages are of this option.

What Is A Table Mortgage?

A table mortgage is a type of mortgage product online mortgage brokers in New Zealand commonly use. It is characterised by a set interest rate that remains constant over a specified period, typically five years. At the end of this period, the interest rate resets to the current market rate, and the borrower can either pay off the mortgage or enter another fixed-rate period.

Advantages Of A Table Mortgage

  1. A table mortgage provides borrowers with a degree of certainty and stability regarding their mortgage payments. With a fixed interest rate, borrowers know exactly what their mortgage payments will be for the fixed-rate period. This can make budgeting and financial planning much easier, as borrowers know their mortgage expenses for the next five years.
  2. Another advantage of a table mortgage is that it can help borrowers save on interest charges. Your online mortgage broker will tell you that fixed interest rates are usually lower than floating interest rates, which means that borrowers can lock in a low interest rate for a specified period and save money on interest charges. 
  3. A table mortgage also gives borrowers the security of knowing their mortgage payments will not increase, even if interest rates go up. This is particularly important in times of economic uncertainty or inflation. It gives borrowers peace of mind that their mortgage payments will not increase, even if the cost of living does.

Your Online Mortgage Broker Can Tailor A Table Mortgage Plan For You

A table mortgage is a flexible product that can be tailored to meet the borrower's specific needs. Borrowers can choose the term of the fixed-rate period, the type of interest rate (fixed or floating), and the mortgage amount. This allows borrowers to ask their online mortgage broker to tailor their loan to their individual needs and goals and ensures they get the best mortgage product to meet their specific needs.

Contact Total Mortgages today. We are online mortgage experts and can assist you in creating the best mortgage plan to meet your requirements. Get in touch today for a free, no-obligation chat.