100k Mortgage Over 15 Years: Repayments, Costs & Tips Explained
Curious what a $100k mortgage over 15 years costs? Get insights into repayments, real numbers, interest tips, and smart ways to pay less in New Zealand.
Home Loan NZ – Your Go‑to Guide
If you’re hunting for a mortgage in New Zealand, you’ve probably felt a mix of excitement and overwhelm. Interest rates shift, lenders whisper about “break fees,” and the jargon can feel like a second language. This page pulls the most useful advice together in plain English so you can decide what fits your life, not the other way around.
Remortgaging – When and How It Saves You Money
Remortgaging means swapping your current loan for a new one, often with a lower rate. It’s not just about a lower monthly payment; it can also trim the total interest you’ll pay over the loan’s life. The key is timing: if rates drop by at least 0.5‑1 % and the break‑fee cost is less than the interest you’d save in the next two to three years, you’re probably in good shape. Use a simple calculator: take your current balance, multiply by the new rate, subtract the old payment, then factor in any upfront fees. If the net result is a positive cash flow, go for it.
Remember, the process isn’t a free‑for‑all. Lenders will still check your credit, income and how much equity you have. If you’ve built up a decent amount of equity (roughly 20 % or more), you’ll have more bargaining power and lower fees. The “Do Payments Go Down When You Remortgage?” article breaks down real NZ examples, showing how a 0.7 % rate drop turned a $2,200 monthly bill into $1,950 after accounting for a $2,000 break fee.
Boosting Borrowing Power Without a Full Remortgage
Sometimes you need cash but don’t want the hassle of a whole new mortgage. NZ banks offer a few alternatives: a top‑up loan, a home equity line of credit (HELOC), or a “second mortgage.” A top‑up simply adds extra money to your existing loan, usually at the same rate. A HELOC works like a credit card tied to your house – you draw what you need, pay interest only on the amount you use.
Which option wins? Look at the interest rate spread and fees. If your current mortgage is at 5 % and the HELOC is at 6 %, a small draw might be cheap, but a large draw could cost more than a top‑up at 5.2 %. The “How to Borrow More on Your Mortgage Without Remortgaging” guide walks you through a quick decision tree: check your equity, compare rates, and run a simple cost‑benefit test. Most NZ homeowners find a top‑up works best for amounts under $30,000, while a HELOC shines for ongoing, variable cash needs.
One more thing: keep an eye on your loan‑to‑value (LTV) ratio. NZ lenders typically cap LTV at 80 % for new borrowing. If you’re already at 75 % LTV, a $20,000 top‑up could push you over the limit, forcing a higher rate or a second loan at a less favorable price.
Now that you’ve got the basics, start by gathering your most recent statement, noting your current balance, rate and any upcoming fee dates. Plug those numbers into a spreadsheet or a free online calculator, and you’ll see instantly whether a remortgage or a borrowing boost makes sense. The right move can shave hundreds off your monthly outgo and keep you on track for the home‑ownership goals you set.
