Increasing mortgage repayments vs Kiwisaver

[marty]

I'm not in Kiwisaver yet, but have had discussions about paying an extra 4% off my mortgage instead.

Does anyone have a link to calculator to figure out how much time/$$ I would save by adding 4% to my fortnightly repayments? I have found ones that will tell me how much I have to pay per fortnight to finish by 2020, but I'd like to see something a bit more comprehensive.


Cheers............................

[Unit:Me]

If you cant find this on any of the bank websites then talk to your bank, Im sure they would NOT be happy to disclose this information as they would make less money out of you.
And to be a real purest about it all, if you put all your wages each month direct onto your mortgage, pay everything by credit card through the month, then draw back the overpaid amount into your mortgage to clear the credit card before the interest is due, this is the most effective way of reducing your overall interest on your mortgage. And make sure your credit card is a member of Flybuys or the like, then you get a free overseas holiday once a year for two!
Just my little bit of financial advice
BTW most Kiwisaver providers have lost money in their first term, Ambo Craig are a much better investment advisor, or put $10k into a compounding interest bearing account and forget it for the next 30 years, works out far better and safer than Kiwisaver at this stage

[Mully]

Have you had a play with the calculators on Sorted?

http://www.sorted.org.nz/

My thoughts are chuck it on the mortgage if you have the discipline. You have to get a pretty good return from Kiwisaver to beat the return on the house. Especially the way the markets are at the moment.

[Mully]

And to be a real purest about it all, if you put all your wages each month direct onto your mortgage, pay everything by credit card through the month, then draw back the overpaid amount into your mortgage to clear the credit card before the interest is due, this is the most effective way of reducing your overall interest on your mortgage.

I'd concur, but make sure you have lots and lots of self control to get a revolving credit mortgage. Banks like them cos most people fuck them up.

[Unit:Me]

I'd concur, but make sure you have lots and lots of self control to get a revolving credit mortgage. Banks like them cos most people fuck them up.

True that, but I watched my brother turn a 30 year mortgage into 7 years with this method.

[Mully]

True that, but I watched my brother turn a 30 year mortgage into 7 years with this method.

Good on your brother. Takes a lot of discipline and sacrifice to do that.

We have messed around with our mortgage structure to maximise how much we pay off. We correctly decided we couldn't do revolving credit.

[marty]

I went to Sorted - it's more of a trial and error calculator. Gives me some good ideas though. Thanks

[Pussy]

True that, but I watched my brother turn a 30 year mortgage into 7 years with this method.

I need to have a chat with you, Unit! I'm just a dumb ag pilot (strong in the arms, weak in the head), and don't have much nouse with things like that, you may save me a few bucks!!

[The Stranger:Me]

True that, but I watched my brother turn a 30 year mortgage into 7 years with this method.

He's not a biker is he?

[homer]

isnt the mortgage the whole saving point ,
i wont be putting in to kiwi saver ,due to the fact thats its share based . no gurantees
you could pay in to it and still get nothing

You can pay the mortgage on the other hand and then sell the place bank the money in high interest account and then pay a small rent later . you still have the money you sold for .

also what happens to all the extra money that you dont get ?
if you save say 1000 a year
and the govt puts in 1000
and the employer puts in 1000
k you get 3000 for that year

what about when you put in say 1500 a year
wheres the bit from the govt
in theory they take 500 off you

rough figures ok

[homer]

another point to
is do you get to claim at the end of year tax for the amount you put in .
after all its money you earned and dont have , so its now a tax deduction

[Mully]

another point to
is do you get to claim at the end of year tax for the amount you put in .
after all its money you earned and dont have , so its now a tax deduction

Is that what the tax credit is about??

I wont be joining either. I get a better deal from work.

[Finn]

DO NOT put ANY money into KiwiSaver. My advice is to keep working hard and stash your money into a bank other than the one you have your mortgage with. Liquidity is key at the moment and given all the indicators, we're in for a rough time ahead, particularly with an over spending Government with third world fiscal policy.

[homer]

I dont know if that whats the tax deal is about , i suspect that it will be
of course well alll get it i suppose .
but i guess if you pay in to kiwi saver you ll get not really anything ,if thats they way they work it .

My finance manager said not to put in to it
go ask your self

[toebug]

You need to have some savings as well as pay off the house, cause when you retire the money tied up in the house is only good for you if you sell it!