Rocket Mortgages

Own your home and a rental property? Which mortgage should you pay down first? 🏡 It’s easy to focus on interest rates. But how you structure your loans—and where you direct your spare cash—matters too. One approach worth considering: Your home loan: • Principal and interest repayments. • An offset account for savings, where available and suitable. • Directing extra repayments towards your home debt. Your investment loan: • Considering interest-only repayments for an agreed period, where it fits your strategy. • Keeping investment borrowing separate from personal spending. • Having a clear plan for repaying the debt—interest-only doesn’t reduce the balance. Why the different approach? Interest on your own home loan generally isn’t tax-deductible. Interest on qualifying rental borrowing may be. So it can make sense to prioritise your home loan before making extra repayments on your investment lending. Two things to check before making changes: 1️⃣ Where will your spare cash make the biggest difference, after allowing for interest rates, tax and your goals? 2️⃣ Could your home become a rental later? Get advice before restructuring or redrawing funds—how the borrowing is used matters. The right setup depends on your circumstances. Your mortgage adviser and accountant should be working towards the same plan. At Rocket Mortgages, we help you look at the whole picture. Want to check whether your loans are working well together? Send me a message. www.rocketmortgages.co.nz

Is your fixed mortgage rate coming up for renewal? Before simply accepting your bank’s first offer, it’s worth considering: • The right fixed term for your plans • Whether splitting your mortgage could reduce risk • Whether another lender may offer a better overall package The lowest rate isn’t always the best solution—the structure matters too. If your mortgage is due for review, feel free to get in touch with me to discuss your options.