Frequently asked questions when buying a home Frequently asked questions when buying a home Contact Us Should I get an appraisal? Yes. An appraisal is an opinion of the value of the property you are planning to purchase. It's one of the requirements needed to apply for a home loan. Should I pay for a home inspection to check the house? Yes. It is a must to have a professional house inspector check the house first before you decide to buy to get your money's worth. We all want some peace of mind when buying something important like buying a house. Should I use an Agent to buy a house? Yes and No. Yes, because an agent can help you with finding a home that will suit you by giving you a list of available homes within your price range and can also give you some information about the housing market. However, be careful to choose by comparing background, experience and agencies. Or you can ask someone you can trust. No, if you want to do it personally and are ready to take on some house shopping yourself. Should I go directly to the bank or other mortgage lenders to borrow? You can go directly to your bank and ask about their mortgage lending criteria. Or you can let us help you by getting the best offer without the hassles of going through the all the rudiments of getting a home loan. How much can I afford? The answer to this depends on your income and your liabilities (debt). Ideally, most home buyers purchase a house that costs between 1 ½ to 2 ½ times their annual income. However sometimes, there are no houses available in your ideal price range. If this is the case, you may need to spend a bit more. Just keep in mind that your monthly mortgage repayment can't exceed 29% of your gross monthly income and your total debt payments (mortgage payments, car payments, credit cards and hire purchases) can't exceed 40% of your gross monthly income. How much can I borrow? It depends on a number of factors and these may include: The value of the home Your income and your ability to repay the mortgage How much you have saved towards your deposit If you are eligible for a First Home Loan Type of home you are planning to purchase How much should I offer for a house? Each property is unique on its own and the ideal offer will depend on how the buyer perceives the value of the property. If a particular house is overpriced an offer below the listing price would be appropriate. If it's just within the ideal price range, an offer at the asking price or just below the listing price will be fine and if it's priced below the actual value, then you are in for a good bargain (get it while you can soonest!). View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Learn about ACC Cover Plus and how it can provide additional protection beyond standard ACC coverage. Consult with Futurisk Insurance in New Zealand. ACC Cover Plus Our Solutions > Personal Insurance > ACC Cover Plus > Our Financial Advisers will work with you to work out the best possible combination of ACC and Insurance Protection cover. ACC Cover Plus Extra Enquire Now Cover Plus, or Cover Plus Extra? Cover Plus – is not guaranteed, it pays only 80% of your gross income. However if you have staff out working and generating income for you while you are unable to work, ACC may not pay you. Cover Plus Extra – will pay the agreed sum no matter what your earnings were in the previous 12 months, prior to you being unable to work. Cover Plus Extra even pays if your staff continue to work and generate an income for your business. Our Financial Advisers will work with you to work out the best possible combination of ACC and Insurance Protection cover, and quite often we can reduce your ACC levies. We make sure you have an affordable plan, with a mix of ACC and Income Protection and still save money on your previous Cover Plus levies. Why use our ACC advisers? Ensure you’re not paying too much for ACC - our advisers will provide clarity and ensure you’re paying the correct amount. Ensure you have the right combination of ACC Cover and Income Cover - our advisers personalise your plan to ensure you’re covered for what you need. We Work for You – Our Advisors work as your advocate – actively working on your behalf with the support you need. Enquire Now ACC and You ACC provides an injury cover for everyone in New Zealand, no matter where the injury occurs. This is paid for by a combination of government funding and deductions from your income which are based on the industry you work in.

 It covers you for accidents and injuries and making a claim is usually straightforward if you are employed with a regular income, and it should pay out 80% of your pre-disability income.

 However, it is not always straightforward if you are a self-employed business owner?

 What if you are self-employed and your income fluctuates? (the previous 12 months may not have been so good, with extra expenses and less work)

 What happens if ACC decides they should not pay? They can say they believe the injury was caused thru degeneration or illness, due to your age. (Will you be covered if you have a heart attack? Can you prove it was a work-related accident? Most self-employed business owners are automatically put into ACC Cover Plus, however this may not be the ideal plan for you. Chat to one of your local advisers today to organise a personalised Life Insurance plan. Talk to an adviser Enquire Now Freephone 0800 17 18 19

How to Strengthen Your Financial Safety Net with Accidental Injury Cover How to Strengthen Your Financial Safety Net with Accidental Injury Cover Contact Us Accidental Injury Cover is typically added to an existing policy, such as Life Cover or Trauma Cover, with a minimum lump-sum amount. If you already have cover in place, you may be able to add this benefit to enhance your protection and build a more comprehensive safety net giving peace of mind that your finances are protected. Whether you're active, out and about working, or simply going about your day, this cover helps enable you to focus on recovery — knowing your finances are supported. How It Works: Tiered Injury Categories Injuries are classified into categories based on severity. The more serious the injury, the higher the payout: Category 1: Minor injuries like a fractured ankle may pay 1–2× your chosen benefit. Category 5: Severe injuries such as permanent loss of hearing in both ears may pay up to 12× your chosen benefit. This tiered approach ensures the financial support reflects the true impact of the injury — whether it’s a temporary setback or a life-altering event. Accidental Injury Cover is a smart, cost-effective way to enhance your protection and gain peace of mind. It’s designed to respond when you need it most — helping you recover with confidence, knowing your financial wellbeing is taken care of. Contact your Futurisk Insurance Adviser to find out more. In New Zealand, ACC provides excellent support for a wide range of injuries. However, it may not cover every expense, and the financial impact of an injury can still be significant. That’s where Accidental Injury Cover (also known as Specific Injury Cover) comes in — offering a valuable layer of protection to help ease the burden. With Accidental Injury Cover, you select the level of your maximum lump-sum payout, and any subsequent payout is then based on the severity of the injury, giving you confidence that your financial support will match the impact of the event. With flexible benefit levels, you can tailor your cover to suit your needs — and it’s surprisingly affordable. Accidental Injury Cover provides a lump-sum payment for specific injuries such as fractures, burns, or the loss of limbs. For example, a hip fracture could trigger a payout of up to three times your selected benefit amount, helping cover medical costs, home support, or lost income during recovery. A lesser or more significant injury would trigger a payout of a lesser or greater amount accordingly. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Find tailored business insurance solutions to safeguard your company. Get coverage for liability, assets, and business continuity with Futurisk Insurance. Business Insurance Our Solutions > Business Insurance > Protecting your business’s ability to keep on making money. Business Interruption Enquire Now Insurance Benefits Cover your business to keep running after an unexpected event Covers the turnover that is lost so you can recover and rebuild Covers ongoing operating expenses Covers relocation costs What can it cover? Business interruption insurance can help your business to keep running after a claimable event. Business Interruption insurance can get you through a temporary crisis by protecting your cashflow, wages and unexpected claims related costs – so you can pay these expenses and help ensure the future of your business. It may also include: Ongoing operating expenses, such as electricity and rent Relocation costs for moving to, and operating from, a temporary location. Wages and Payroll Claims preparations costs; and more Cover insures a business owner against loss or damage to physical assets including buildings, contents, plant and equipment, and stock. Material Damage Enquire Now Insurance Benefits Protects business owners against loss or damage to their physical assets including building, plant, stock and fitout What is material damage? Cover insures a business owner against loss or damage to physical assets including buildings, contents, plant and equipment, and stock. Whether caused by accident, fire, theft, vandalism or natural disaster. Covers most vehicles used in business throughout New Zealand. Commercial Motor Vehicle Enquire Now Insurance Benefits Cover your business to keep running after an unexpected event Covers the turnover that is lost so you can recover and rebuild Covers ongoing operating expenses Covers relocation costs Don't let your vehicle become a liability Commercial vehicles are an important business asset. Their protection along with associated vehicle liability cover, is essential to the success of any business. You and your team may be good drivers and take all precautions to protect your vehicle, however your own driving habits are only one part of the equation. Accidents can occur due to other people’s driving, weather events or other natural disasters. We can offer cover for your business and commercial vehicles. Full comprehensive cover Third party fire and theft cover Third party only Important cover for commercial, industrial and domestic builders, sub-contractors, and property owners against damage, natural disasters, theft and product or public liability. Contract Works Enquire Now Cyber Insurance helps to protect your electronic data Cyber Insurance Enquire Now Insurance Benefits Protects your electronic data Covers you against external hacking or breaches of website or confidential data Protecting your business information and privacy from cyber attacks is vital, as everyone is a potential target. Cyber Insurance Includes: Protects against human or system error Reputational damages (business interruption) Post-event consulting costs Third party claims for data leaks Access to a team to support when an attack is happening. Freephone 0800 17 18 19 Other isurance options If you have specific insurance needs and have not seen what you are after on our website then please contact us. We have a range of options and may be able to meet your needs. Our advisers are here to help. Enquire Now Liability Insurance Options Public Liability: Covering your legal liability and the costs of defence for to third party property or personal injury where you may be found to be liable. Statutory Liability: Covering unintentional breaches to most statutory acts including legal defence costs, reparation costs and in some cases fines. Employers Liability: Cover for accidents and illnesses to employees during the course of their employment which are not covered by ACC and the costs of legal defence. Professional Indemnity: Cover designed to protect against economic loss sustained by third parties as a result of the performance of your professional services and advice. Management Liability: Provides cover for Directors & Officers Liability, Entity, Employment Practices Liability, Trustees Liability and Crime. Talk to an adviser Chat to one of your local advisers today to organise a tailored business insurance plan. Enquire Now Insurance Benefits Protects your business on construction sites Protects the building under construction from natural disasters or damages caused by theft or vandalism the turnover that is lost so you can recover and rebuild What can it cover? Depending on your policy, contract works insurance can cover you against: Natural disasters Damage to property Broken glass Defects Liability Liability Insurance Enquire Now

Nine Things to do to get Your Personal Finances in Order Nine Things to do to get Your Personal Finances in Order Contact Us 5. Set financial goals and save for them. Most people have dreams and goals. Problem is we don't plan a strategy to achieve them. Rather than saving for things like a new car or overseas trip, we go into debt to pay for them. Set goals, price how much those goals will cost, work out how much you need to save per month to save that amount, and go for it! 6. Protect what you've got. We all struggle with the "I" word = Insurance. If we never make a claim insurance can seem like money thrown away. Many people have fallen into a lifetime of debt because of inadequate insurance. Here's the general rule of thumb - anything you need but cannot afford to replace with cash if you lost it should be insured. This includes your ability to earn money. (Futurisk give free no-obligation insurance consultations; contact us to make an appointment). 7. Make a financial plan for retirement. People often ask, "When is the best time to save for retirement?" The answer is "now." There are two basic mistakes people make; the first is that they leave it too late to begin saving for their retirement. The second is that they assume their family home is an adequate investment for their retirement when it is only part of what they will actually require. A great way to save for retirement is through a workplace savings scheme, especially if your employer will make a contribution too. And, whatever your age, a great time to start is now. 8. Invest! Make your money work for you. There are many ways to invest other than property or the share market. We all need to determine which is best for us. Simply leaving money idle in the bank, however safe and secure it may be, is not maximising the earning potential of those savings. 9. Teach your kids about money. There is a definite lack in our school system as regards the teaching of basic personal financial management. Teach your children about budgeting, saving for things they want, how to write cheques and use internet banking, the true value of the things we buy etc. It'll pay off in the end - maybe they'll help you build a ‘granny-flat' on the back lawn of their mansion!! The team at Futurisk have three rules regarding personal finance: Spend less than you earn Pay off debt Don't go into debt This article expands on those rules - do these nine things and you need never worry about your finances again. 1. Know what you've got and work to increase it. A person's net worth is the value of everything they own minus everything they owe.In other words; assets minus debt. Many people do not know what their net worth is. Some would be surprised at how high it is, others shocked at how low it is. Set goals and plans that will enable you to increase your net worth. Decide on a figure that you would like to achieve in the next ten years and work out how you can achieve it. I think you might be surprised how much you could increase your net worth over a decade if you just start now and keep at it. 2. Budget! In New Zealand today the average person is spending 17% more than they earn, and that does NOT include mortgages (Dept of Statistics figure) - that means they are now adding to their net worth, they are going into greater debt. The reason people overspend is because they have not calculated how much money they are able to spend without going into debt. The answer is simple; do whatever you have do to ensure you spend less than you earn. Now, it's difficult to never go into debt but it must be avoided unless absolutely necessary. Borrow only what you absolutely need to, e.g. to buy a house. And, when you borrow money, make sure you know the true cost of borrowing that amount. Once interest payments and fees are added onto a purchase it can make for a very expensive item! 3. Pay off debt. This is one of the fundamental principles of good personal finance; pay off debt as quickly as possible. Start with the debt you're paying the highest interest on. This will usually be credit-card and hire purchase debt followed by personal loans and mortgage debt. Remember, the faster you repay debt the better off you are long-term because it is the interest payments that cripple us financially. Paying just the minimum repayments on your debt means you pay thousands of dollars in unnecessary interest. 4. Save for an emergency fund. The killer for the personal finances of many people comes when their washing machine dies or their car breaks down or some other unexpected crisis arises. With no savings we often go into debt that can that haunt us for a long time. Having savings equivalent to three month's income can overcome such an eventuality. NOTE: this is a good thing to do even if you are paying off a mortgage. However, if you have high-interest debt, pay that off first. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Find the best insurance and mortgage solutions in Waikato with Futurisk Insurance. Expert financial guidance for individuals and businesses. Futurisk Waikato Our Solutions > Waikato > We are your local Manawatu advisors who live and work in your community. We work for you, not the insurer or the bank. We’ll guide you through insurance and mortgage solutions with honesty you can trust and advice you can count on. Contact 0800 17 18 19 +64 7 929 2296 enquirieswaikato@futurisk.co.nz Unit 4, 310 Tristram Street, Hamilton PO Box 1419, Hamilton Central, Hamilton 3240 Enquire Now A partner of choice We strive to be partner of choice - for our customers, insurance companies and employees looking for long-term relationships built on a foundation of trust. Our Values, Ethics, Morals, and Integrity - at Futurisk these are the most important factors of our business. Our dedicated team support one another - we learn together, and share each other’s success! We have high standards of achievements and have commitment to the company. We keep our Advisers well informed - they receive continuous education for new products that come up onto the marketplace, we hold regular team meetings, extensive trainings and outings. Our Waikato Team At Futurisk Waikato our mission is to spend time getting to understand you and your financial goals so we can provide you personalised advice which is appropriate for your circumstances and needs. The Principal Adviser, Mark Henderson started in the financial services industry in 2003 as an Insurance Adviser and in 2005 became a consultant with Mortgage Solutions and Financial Services Ltd. In 2010 Mark helped develop the “M-Power” debt management service with Fortifi Financial Solutions and in 2013 he started his own company, Marlin Solutions Ltd. Marlin Solutions provided a range of financial services such as Insurance, Mortgages & Debt Management. In 2020 Mark and Marlin Solutions joined forces with Joe Singh from Futurisk Insurance Limited and they started a new company, Futurisk Insurance (Waikato) Ltd, trading as Futurisk Waikato. Futurisk Waikato are now able to provide expert advice on a wider range of financial services including Domestic Insurance, Commercial Insurance and other General Insurances. Futurisk Waikato also offers our specialised ABF Money Management Service to help kiwis take control of their finances and become debt free faster, saving thousands of dollars in interest payments. Our Waikato Office Meet our Waikato specialists Our advisers are all accredited and have a number of years industry experience behind them. They will work with you to create an ideal insurance plan for you and your family that supports your lifestyle, or the cashflow that your business would need to keep going should something happen. Mark Henderson Director / Financial Adviser 07 929 2296 Bio Mark is the Principle Adviser for Futurisk Waikato and has been involved in the financial services industry since 2003 after working in various roles within NZ post for over 16 years. He lives in Hamilton with his wife. Mark has 2 adult sons and loves spending time with his grandchildren. Mark is keen on most sports and enjoys competing in Masters Athletics. Mark is a proud member of Financial Advice New Zealand (FANZ) and complies with their Code of Ethics in all facets of his business. He has also completed the Trusted Adviser qualifications, with them. Email Alaa Al Hassan Financial Adviser – Life & Health Bio Alaa is a Financial Adviser specialising in personal risk insurance, including life, health, trauma, income protection and accident cover. With nearly 20 years of experience in the insurance industry, including extensive work in the UAE, Alaa brings a wealth of knowledge and passion for helping clients protect what matters most — their health and financial security. Now based in Hamilton, with his wife and 2 children, Alaa holds the Level 5 Certificate in Financial Services and is dedicated to supporting individuals and families across the Waikato. Outside of work, Alaa enjoys playing basketball and spending time with his family. Email Get in touch with our Manawatu team today, for local support on your insurance or mortgage needs. Get in touch Enquire Now Freephone 0800 17 18 19

Five Reasons to See a Mortgage Adviser Before Going to Your Bank Five Reasons to See a Mortgage Adviser Before Going to Your Bank Contact Us 4. Convenience and Time Saving The first time I took out a home loan was a long time ago. I knew little about finance and mortgages, but I was determined to get the best deal. I spent hours collecting brochures from various banks and comparing rates and loan terms. Then I filled out the applications to three different banks hoping that one would approve my loan. It was incredibly time consuming and I was never completely certain I was making the best decisions. A few years later, I was looking to refix and extend my mortgage. I still didn’t know a lot about home loans, but I had been recommended by several friends to use a mortgage adviser. What an incredible difference it was. I had one meeting with an adviser and they did the rest, streamlining the process, saving me time and reducing the stress. If only I knew then what I know today! 5. Ongoing Support Beyond Settlement Personalised support is something the Futurisk Mortgage Broking team prides itself on. You see, a good mortgage adviser doesn’t disappear once your loan is approved. We stay in touch or, if anything changes for you, we’re only ever a phone call or email away. Support includes helping you reassess your mortgage if your circumstances change and checking that your loan remains competitive over time. We are there for refixes and mortgage extensions or if you find yourself in need of financial advice relating to your mortgage. The proactive ongoing support provided by a mortgage adviser can make a big difference to your long-term financial health. Your Mortgage Adviser is your Advocate Banks are important but they’re not always the best starting point when you’re looking to borrow money for a home. A mortgage adviser acts as your advocate with banks and other lenders. We offer choice, expertise, and convenience. If you or someone you know is looking for a mortgage that best fits your life’s circumstances, give Futurisk a call today. You’re looking to purchase a new home and need a mortgage so it’s obvious—you just drop into the bank you’ve always used and ask for a home loan, right? No. Just hang on a second. While many borrowers instinctively turn to their bank when taking out a home loan, there is another way. Working with a mortgage adviser from an independent company such as Futurisk can mean significant advantages. Whether you're a first-home buyer, or looking to buy an investment or holiday property, or wanting to refinance your existing loan, here’s five reasons why meeting with an independent mortgage adviser might be your best course of action. 1. Access to a Range of Loan Products Because banks will only offer their own mortgage products, your options are limited. The bank will prescribe the type of loan, how it is set up, the interest rate, the repayment terms and all other aspects to the loan. Mortgage advisers, on the other hand, have a relationship with multiple lenders. These will include major banks, credit unions, and non-bank lenders. At Futurisk Ltd, we’ll listen to your individual needs, compare a wide variety of loan products, and recommend the one that best suits your financial situation and goals. 2. Potential for Better Rates and Terms The broad network of lenders that a mortgage adviser has access to means they can often negotiate aspects of your loan such as interest rate and loan terms. As mentioned above, at Futurisk, we take time to understand your credit profile, income, budget, and borrowing needs. That means we can match your needs with the loan that is most beneficial to you. 3. Expertise and Support We don’t want to blow our own trumpets, but the clue is in the name; “Mortgage Advisers” are experts in all aspects of mortgages. Rather than telling you what is best for you, a mortgage adviser will guide you through every step of the home loan process—from pre-approval to settlement. We’re mortgage experts who will help you understand the fine print, avoid common pitfalls, and ensure your application is complete and accurate, which can improve your chances of approval. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Do you have an emergency nest egg? Do you have an emergency nest egg? Contact Us Most financial gurus and advisers these days recommend having a separate account that’s just for emergencies, and they’re not hard to set up. In fact, most banks will let you do it online. Just log in to your banking website and create a brand new internet account.But having the account is only half the job – now it just needs some money. Because many people live from pay day to pay day, putting a couple of hundred dollars aside into your emergency account is much easier said than done. Instead, consider starting an automatic payment, so every week or fortnight even as little as $5 is transferred into your emergency account without you having to do anything. $5 doesn't sound like much, but within 10 weeks you’ll have more than enough to put petrol in your car and buy some lunch if your pay doesn't come through. One of the key pieces of advice given about keeping an emergency accounts is to make it a little harder to access than your regular accounts. If you had a card in your wallet that had access to your emergency account, the temptation to spend the money would be too great. Instead, make it so that the only way to access that money is to have to transfer it from the special account into your regular account. So next time you need some emergency cash in a hurry, all you’ll need to do is whip out your smartphone, transfer some money and you’ll be away laughing. Earlier this year this was a glitch with ANZ’s payment system, and a whole lot of New Zealanders woke up on payday to discover they hadn't been paid. It didn't take long for the issue to be resolved, and everyone was paid by lunchtime, but the ANZ Facebook page was still inundated with complaints and tales of tragedy as people claimed they were now starving, cold and unable to put petrol in their car because of ANZ’s mistake. If you woke up on payday and found yourself in this situation, what would your day be like? Would you be going to work hungry because you couldn't afford to buy food for lunch? Would you have to walk to work because you had no money to pay for petrol or a bus? Or would you just transfer a few dollars from your emergency account and go on your merry way? For many, waking up on pay day to find their account empty should be a wake-up call, and one of the best things you can do if you’re scared of ever being in this situation is to create an emergency account. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

How to decide before you buy something How to decide before you buy something Contact Us THREE: What will this item really cost me? If ever you decide to buy something on credit, the first question you should ask it this: "What will this actually cost me?" Recently I saw a lap-top that I'd quite like. It cost around $1,000. But there was a deal - the store said I could have it for just $10 a week spread over three years. $10 a week didn't seem much, until I worked it out. Spread over three years, $10 a week is a lot more than $1,000 - it's $1,560! You see what I mean? It wasn't such a great deal after all. I was paying one and a half times what the lap-top would have cost if I paid cash. Avoid purchasing anything on credit, but if you do, calculate the actual cost of the item - it may make you change your mind! FOUR: What can't I have if I buy this? We all have a limited amount of money to spend. That means, when we spend money on one item, we have to go without something else. So, before you buy anything ask yourself, "What is it that I won't be able to afford to buy?" Then ask which of those items you'd rather have. Remember this, if we buy a luxury item with cash, but then have to put our weekly groceries or petrol on our credit card, we have, in effect, gone into debt for that luxury item. FIVE: Will buying this item blow my budget? This question is like a summary question of the previous four. Living without a budget is dangerous for our personal finances. But a budget is only worth anything if we stick to it. So, if you don't have the available money to buy that treat, put off buying it until you do, it could save a lot of heartache in the long term. If you'd like any advice on your personal or business finances, contact the team at Futurisk. "Your money is burning a hole in your pocket." That's a phrase my mother used to use. It's another way of saying, sometimes we just feel like buying something! And, we've all felt like that at some time or another. We're down at the mall and we see something we'd like. We say to ourselves, "I've got to have that, and it only costs..." The reality is this, every time we purchase anything it impinges on our future lifestyle and living standard. That's why we need to pause and ask ourselves a few searching questions before we pull out our eft-pos card. Here's Futurisk's five questions to ask before you buy anything: ONE: Do I really need this? Impulse buying can quickly lead to regret, especially when a credit card is used. While there's nothing wrong with buying the occasional luxury, we need to ensure those purchases are within our budget. The best thing to do is set aside some money for those treat-type items, and stick to your budget no matter what! TWO: If I buy this, will I go into debt? The answer to this question is always, "yes," unless you're buying with cash, eft-pos or debit card, or you can clear your credit card before the next due date. New Zealand is facing a debt crisis and this is the number one way ordinary New Zealanders get themselves into trouble with their personal finances;we overspend on our credit cards. It only takes a small luxury here and another small one there, and before you know it - you're struggling to repay your credit card debt. The simple rule is - avoid going into debt View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

How your bank decides to loan you money How your bank decides to loan you money Contact Us Equity (sometimes called Collateral). Equity is a measure of your net worth. It's the value of what you own minus the value of what you owe. In short, the bank wants to be sure that, if you can't repay your loan, you have enough value in your home so that, if they sell it, they can recoup the money you owe them. This is why part of the application form will include a measure of assets versus liabilities. In recent times this became a problem for the bank (and for the person they loaned money to). You see, the banks were loaning 100% on the value of a home. That meant, if the housing market dipped and a mortgage holder couldn't repay their loan, the bank would sell the property but not recoup all their money. So, the person who borrowed the money is now without a home, and still owes money to the bank. This is why there is so much talk about LVR; that is, your loan to value ratio. LVR is the amount you will owe on your house divided by the amount it is worth. LVR's vary from bank to bank but most will usually only loan up to 80% LVR. That means, if you want to buy a new home you will usually need at least 20% of the purchase price as a deposit. It also makes it quite easy to work out how much you can afford to spend on a house - just multiply your deposit by five. Character. For many banks, your financial character is the most important criteria used to assess whether you qualify for loan or not. Banks will look at your financial track record to determine whether they think they can trust you to repay a loan. They will take into account things like whether you have; previous defaults on any type of loan repayments, fines owing, a poor credit rating, a poor job history, or whether you are constantly going into unarranged overdraft. This is why banks ask for three months' bank transactions before giving out a loan - it's to check how well you manage your finances. This is an aspect of borrowing that many people underestimate. It's not just about having a deposit. The bank is more concerned about getting back the money it gives to you, and to prove that you will do that you need to have a good credit and banking record. The challenge. The challenge is simple; if you think you are going to want a bank loan sometime in the future, you need to be proactive now in ensuring you are an attractive client to the bank in these areas; Serviceability Equity, and Character. The team at Futurisk would love to talk to you about all aspects of your personal finances. You will have read in the news that banks are tightening up on lending money to home buyers. Not so long ago it was easy to get a loan, now many first home buyers are wondering how they will ever secure the money to get into their own home. There are, however, things you can do to make yourself more suitable for a bank loan. But don't leave these things until the last minute. If you think you may want to purchase a home in the future, think about these things now. The bank uses three criteria to assess whether to give you a loan There are three key criteria the bank will measure a potential borrower against; Serviceability Equity Character Serviceability (sometimes called capacity). Serviceability measures your ability to repay a loan. Basically, it is your income minus your expenses. This is why, when you apply for a loan, the bank asks you to complete an application form with records of your monthly earnings and monthly spending. Each bank will have a slightly different mathematical formula to calculate serviceability, and slightly different requirements regarding the surplus funds you should have at the end of each month. However, in general terms, banks will expect you to have a monthly surplus of around $300 after all your expenses have been paid. Two things will greatly affect your serviceability and therefore your chance of getting a loan. The first is overspending. If you're thinking of asking the bank for a loan, begin to economise now so that you can show you're able to live on a minimal budget. The second thing that will affect your ability to service a loan is existing debt. If you have debt, you will be making repayments. Those repayments will count against you being granted a loan; and that includes the debt from a student loan. Remember the old rule - pay off debt as quickly as possible. View next post At Futurisk, we work for you, not the insurer. So when it’s time to make a claim, we’ve got your back. We’ve got your back Enquire Now Freephone 0800 17 18 19

Ensure your mortgage payments are covered in case of unexpected life events with mortgage protection insurance from Futurisk Insurance. Mortgage Protection Our Solutions > Personal Insurance > Mortgage Protection > Mortgage protection cover can provide you with a regular monthly mortgage payment if you are unable to work due to sickness or injury. Mortgage Protection with Futurisk Enquire Now Additional Options Redundancy Cover If you are made redundant, you’ll be covered with monthly payments for up to six months.. Retirement Protection (KiwiSaver) Under this benefit you can keep contributing to your KiwiSaver while you’re on a Total Disability claim, helping you to continue receiving the member tax credit. This contribution is an addition to your monthly benefit. Mental Health Limitation This option will reduce your premiums and you will receive payments for only two years throughout the life of your policy should you make a claim for mental health. Dependent Care Benefit This option will provide you with a proportion of a monthly benefit should you need to give up work to provide full-time care for a relative who can no longer take care of themselves because of total disability. Claim Indexation Your sum insured will increase every year according to the CPI, (New Zealand Consumer Price Index). This helps your sum assured stay in line with inflation. Benefits of Mortgage Protection World Wide cover Recurrent Disability Benefit Vocational Training Benefit Home modification of Equipment Support Waiver of Premiums Suspension Cover Benefit Back to work payment What can it cover? Mortgage protection cover can provide you with a regular monthly mortgage payment if you are unable to work due to sickness or injury. Why Mortgage Protection? For many people their house is their most valuable asset. If you are unable to work due to an illness or injury, Mortgage Protection Cover can provide you with regular monthly payments so you won’t be worried about your mortgage or rent payments when you would be better off focused on regaining your Independence. Cover Options: You can choose to cover up to 115% of your contractual mortgage repayments on your residential property. Up to a maximum of 45% of your gross income. Offsets No offsets apply. Mortgage protection does not have ACC offset. Waiting periods The length of time between you becoming disabled and the time when you are eligible to receive a claim payment can vary to suit your personal requirements. Longer waiting periods can decrease your monthly premiums. We can offer waiting periods from 4-104 weeks. Benefit Payment Periods You can select the amount of time you receive payments. Selecting a shorter benefit payments period can decrease your premiums. We can offer from 1 - 5 year payment periods with options for your policy to end at ages 65 or 70 years old. Chat to one of your local advisers today to organise a personalised insurance plan. Talk to an adviser Enquire Now Freephone 0800 17 18 19

Protect your car with comprehensive private motor vehicle insurance from Futurisk Insurance, ensuring peace of mind on New Zealand roads. Private Motor Vehicle Insurance Our Solutions > Personal Insurance > Private Motor Vehicle Insurance > If your car gets damaged or is written off, we’ll make sure you’ve got the cover you need to get you back on the road as soon as possible. Private Motor Vehicle Insurance Enquire Now Benefits with Futurisk We can help at claim time Let someone else pay to replace or repair your valuable possessions You choose the excess Whether you are zipping around the city in a small car or riding a motorbike, or driving a sleek luxury model, you depend on your vehicle for freedom and flexibility. So, it is important to know that if your vehicle gets damaged or is written off, you’ve got the cover you need to get you back on the road as soon as possible. Motor insurance includes a range of covers to suit every driver and vehicle type. What can it cover? The cover provided by comprehensive insurance can vary, depending on the policy. Here are some examples of possible cover: Agreed or Market Value Replacement of a lost or stolen vehicle Cover to help pay for the damage you’ve caused to another person’s vehicle or property A replacement of the same make and model for new cars that are written off within twelve months Legal liability cover Broken Windscreens Need Commercial Vehicle Cover? We provide cover for most vehicles used in business throughout New Zealand. Check out our specialised Business Insurance solutions. View Commercial Cover Chat to one of your local advisers today to organise a personalised Motor Vehicle plan. Talk to an adviser Enquire Now Freephone 0800 17 18 19