Six Things Your Bank Will Never Tell You Six Things Your Bank Will Never Tell You Contact Us 4. Bouncing cheques are good for your bank’s business as long as you don’t write too many. Providing there’s no fraud involved, your bank earns big bucks every time a cheque bounces. Not only do they sock you with a fee for the bounced cheque, you'll pay a higher rate of interest if you go over your agreed overdraft. 5. You can pay your entire credit card bill by setting up a direct debit like you do with your power or phone. Banks don’t actively encourage customers to do this. Why should they? They can’t earn interest on your credit card if you pay it off each month. For the bank, the best credit card is one that has money owing on it. 6. Bank advice may be self-interested. Sometimes, when you use your credit card to book overseas travel-related items,you will be charged interest immediately; e.g. if you use your card to book a hotel room for a trip you are to take three months' time, you may be charged interest from the time of booking rather than the time of staying in the hotel. In a similar way, if you rent a car overseas the trader ma reserve an amount of credit to secure their payment or to cover any possible damage to the car etc. That means, you may find when you use the card it has less credit on it than you expected despite you having actually bought anything. Most people know nothing about the lodging security until it's too late. If you are travelling overseas with your credit card, or using it overseas with your credit card, or using it overseas from within New Zealand, it pays to find out first, what the various conditions of use are. So, these are Futurisk's six credit card traps. One thing we cannot stress enough- avoid credit card debt. What if I'm already in debt? If you find yourself struggling with debt right now, contact the team at Futurisk. We may be able to restructure your debt in a way that savs you hundreds, even thousands of dollars. This information is adapted from Consumer Magazine (January/February 2006, Issue 455, Page 23). There’s something every person who uses a bank needs to understand—a bank is a business. It exists to make a profit and it does that by maximising the use of your hard-earned cash. Knowing how they do that could save you money. Here are six things your bank will never tell you: 1. Your bank wants you to overspend and stay in debt. That may sound a little harsh, but that is the simple reality. You see, banks make money from people who are in debt. In fact, if you are $250,000 in debt you are a better customer for a bank than a person with $30,000 cash in their savings account. The more you spend the more interest the bank earns from you. And, if you’re prone to cheques bouncing, or if you don't pay your credit card bill off in full every month, then you are the bank’s best-friend. 2. A bank’s review of your account is really a sales pitch. The bank is thinking of its bottom line, not yours. If you’re offered a review of your finances or get a call from your “personal banker,” then chances are they want to sell you a new product—usually insurance. It could be that the product on offer is good value, but ask yourself two questions: Do I need the product at all? And, is the bank’s product better than the one I already have or can get elsewhere? 3. Banks prefer to keep their savings-rate changes under wraps. When banks advertise new accounts with flash savings rates, they do so to attract new customers. The banks can’t afford to put their existing customers on these new high-flying rates and they often don't tell you about them. That’s why it pays to ask. 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 know if a reverse mortgage is for you How to know if a reverse mortgage is for you Contact Us So, is it a good idea for me to take out a Reverse Mortgage? This is a decision only you can make. There are, however, a few things you need to consider; Is there some other way to raise the cash you require? Reverse Mortgages are expensive. If the amount of cash required is small such a loan is not worth the cost of the setup fees etc. Even for a larger amount of money, it makes better financial sense, if you can afford the repayments, to take out a standard mortgage or personal loan, or free up cash by downsizing your home. Find out how portable the loan will be; i.e. if you move home do you have to immediately repay the loan, or can you attach it to your next home? Before entering into a Reverse Mortgage (Home Equity Release Mortgage) make sure you seriously consider the effect it may have on your future, especially as regards any move you may wish to make and the capital you'll need to make that move. Also consider how important it is for you to be able to leave something to your children in respect of an inheritance of some sort. Some companies offer what is known as a no-negative-equity guarantee which is exactly what is says; a guarantee that ensures that when you sell your home, if you receive less for the home than the value of the outstanding loan, neither you nor your estate will have to make up the shortfall. Get professional advice in this regard if you need it. Shop around for a good deal. Make sure you read the contract well and understand exactly what the deal you're offered really means before you sign anything. If you're on the pension (and Reverse Mortgage recipients usually are) make sure that receiving funds such as these do not jeopardise the receipt of your benefit. The Bottom-line: Reverse Mortgages are not a bad idea, but neither are they necessarily a great idea. If you have an urgent need for cash, e.g. for a surgical operation or the like, then a loan like this can be perfect for your needs. However, make sure you understand the drawbacks. They are expensive, and much of the expense is invisible. That is, it is in the form of interest repayments which are constantly growing without you realising it. Also, if you have no family and no one you want to leave your home to you may as well spend your money before you go! In that case, a Reverse Mortgage may be perfect for you. However, if you have family or others you are hoping to leave a nest-egg to, beware. If you have a need for some extra cash, perhaps a better scheme would be for those who you're wanting to leave money to, to take out a loan on your behalf. That way it's like they're making an investment in a property that should increase in value over time. For more information on home loans, refinancing your loan, or interest rates, contact the team at Futurisk, enquiries@futurisk.co.nz . You've probably heard of a Reverse Mortgage, sometimes called a Home Equity Mortgage. With our aging population, they are becoming more common. Reverse Mortgages can be a good way to free-up money to spend on things you want - provided you're aware of the many pitfalls. What is a Reverse Mortgage? A Reverse Mortgage enables you to borrow money against the equity you have in your home, up to a proportion of the value of that property.Repayments on the loan are made when you leave the property; that is often when a person sells, moves into a retirement home, or dies. How much can I borrow? The lender will calculate the maximum amount you can borrow according to your age and the value of your home. If you're aged between 60 and about 65, you will usually be able to borrow about 20% of the home's value. This proportion increases as you get older, so that by the time you're over 85 it can be as much as 45% of the house value. How is the loan paid out? A Reverse Mortgage loan may be paid out in one of three ways; a lump sum, which is great if you are borrowing for a particular one-off purchase; small regular payments, which is perfect if your retirement income is not enough to cover your regular expenses. This option is not offered by all companies, however. a line of credit or a revolving credit loan. Would I be eligible? To be eligible for a Reverse Mortgage, you must own your own home and, usually, be 60 years or older. Are there other things I should know? Setting up a Reverse Mortgage can be expensive. You will be required to have your home valued, that will cost around $400. Some companies insist you do this every five years or so which can become quite a sizable on-going expense. Then there will be set-up fees for the loan. These can vary from around $1000 to $2000 plus legal costs. What's more, most companies will insist that you keep up with payments for insurance on the home, and that property maintenance is kept to their standard What about the interest rate? Be careful! This is where things can get expensive. You do not make regular repayments on a Reverse Mortgage loan. The loan is repaid in full when the home is sold or you no longer have control over it. Your interest rate will be higher than a normal mortgage rate and, as it compounds, you can quickly lose the equity in your home. 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

Six Credit Card Traps to avoid Six Credit Card Traps to avoid Contact Us 4. Missing payments Be careful, with some credit cards, if the bank does not get full payment the day it is due or before you will be charged interest in the full balance. The best way to ensue this does not happen is to arrange to have your credit card bill paid monthly by direct debit or internet banking, that way you never miss a payment. 5. Purchasing goods overseas When you use your credit card overseas you will usually incur two fees: the first is the bank's fee. The fee is often associated wit currency conversion and may be called something like a "currency conversion fee." The second fee is charged by the credit card company. When combined, thee fees can add up to 3% (perhaps a little more) onto your purchase price. It doesn't seem much, but 3% added onto your overseas trip can become quite a large sum of money. 6. Lodging security Sometimes, when you use your credit card to book overseas travel-related items,you will be charged interest immediately; e.g. if you use your card to book a hotel room for a trip you are to take three months' time, you may be charged interest from the time of booking rather than the time of staying in the hotel. In a similar way, if you rent a car overseas the trader ma reserve an amount of credit to secure their payment or to cover any possible damage to the car etc. That means, you may find when you use the card it has less credit on it than you expected despite you having actually bought anything. Most people know nothing about the lodging security until it's too late. If you are travelling overseas with your credit card, or using it overseas with your credit card, or using it overseas from within New Zealand, it pays to find out first, what the various conditions of use are. So, these are Futurisk's six credit card traps. One thing we cannot stress enough- avoid credit card debt. What if I'm already in debt? If you find yourself struggling with debt right now, contact the team at Futurisk. We may be able to restructure your debt in a way that savs you hundreds, even thousands of dollars. Credit card can be dangerous! Many people in New Zealand today find themselves buried by inescapable debt that can be traced back to being overzealous in the use of their credit card. Sure, credit cards are handy. They provide an easy way to purchase things online or if you don't want to carry cash around with you, but it's so easy to forget when you buy something with your card, you are incurring a debt. And, once you get into credit card debt, it can be very difficult to get out of. That's why the team at Futurisk want to remind you of the six credit card traps you need to watch out for: 1. Extra Credit Every credit card will have a credit limit - that's a maximum amount you can have owing on your credit card at any one time. When you first received your card the issuing bank will told you what credit limit is. As time goes by, the bank will offer to increase this limit for you - particularly if you have been paying your card off each month before the interest payment clicks in. BEWARE: this increased limit will immediately increase the chances of you overspending. That's what the banks are hoping for....to get you into debt so that they can make money off the interest you owe. There was a time when banks didn't even give you a choice about the increased credit, they just put it on your card and called it a, "privilege." The law has changed, however. These days banks should ask if you want the extra credit. If the bank approaches you to ask if you want to increase your credit limit, decline their offer 2. Cash advances Here's something a lot of people don' realise. When you buy goods with your credit card there is usually a one month credit free period, BUT, when you get cash out on your credit card you begin to pay interest immediately. A void using your credit card to et cash out of the bank. 3. Card payment surcharges Have you ever gone to use your credit card and had a vendor tell you it will cost you extra to put purchases on a card? That used to be illegal. These days it's considered acceptable provided the vendor tells you about the surcharge before you use your card. I still think it's a bit on the nose, however, and I refuse to pay such surcharges. Wether you do or not is up to you, but be aware, the surcharge is usually a percentage of the purchase price of our goods. That means, on a large item the surcharge can be quite high and can easily wipe out any saving you thought you were making. 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

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

How important is third party car insurance How important is third party car insurance Contact Us Should third party car insurance be compulsory? The Government seems to be weakening on this issue. Some politicians are saying they want to see compulsory third party insurance on cars, and most New Zealanders agree with them. What many people don't realise is how inexpensive third-party insurance can be to buy and how expensive having no insurance can be in the event of an accident. I think our family's story should be a warning to every car owner; you may think you'll never have an accident of any sort, but they happen, and when they do, they can be very expensive. Insure your car and avoid debt! If you have a vehicle, insurance is vital. Remember, when you insure something such as a car, it is not the car you are insuring. You are insuring yourself so that, if you cause damage with that car you will not be placed under the pressure of a debt you may never be able to escape from. Vehicle insurance is not about insuring your car - it's about insuring yourself against a lifetime of debt! If you are uninsured because you find it too expensive, phone an insurer and ask for a third-party insurance quote - it's worth it for your own peace of mind. For years people have been writing letters to the editors of newspapers and phoning talkback saying that third party car insurance should be compulsory. We're not going to go into answering that question here, but one thing we do know for sure; if you're driving your car without at least third party insurance, you are crazy!! A lesson learned Let me tell you a story about our youngest daughter's most horrifying moment. We had an old blue Corolla. Three children had learned to drive in it and they were pretty good drivers. It was an old car, but it was a good car. Mechanically, it went well and there was very little evidence of rust. One day our daughter came home, parked the car in the drive and went inside. Minutes later, she heard a crash. She'd forgotten to put the handbrake on! The car had rolled backwards and into our neighbour's house. Amazingly, there was very little damage to the car. However, the house didn't fare so well. The car was now sitting in the front bedroom. The cost to repair the house was $27,000! As I talked with our daughter about this I pointed out, "If you didn't have insurance, you would be paying that off at $100 a week for the next five years." What is third party car insurance? Third party car insurance is insurance you take out to repair or replace any damage you do with your vehicle, it doesn't cover damage to your own vehicle. There are two types of third-party insurance; Basic third party insurance insures the damage you may cause to another person's vehicle or property with the insured car. Third-party fire and theft is slightly more expensive and insures damage to other vehicles, and to yours if your car if it is damaged by fire or stolen. So, while your car isn't covered, any damage your car causes is. That makes third party car insurance ideal for cheaper cars. The Corolla I told you about was only worth $1,000. To insure it was going to be about $500 a year because of the age of our children. Third party insurance, however, was only $150 a year - and it was worth every cent for our family. 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

Car Insurance hiccups Car Insurance hiccups Contact Us 3. Taking your vehicle off-road Most would assume this rule doesn't apply to them – when was the last time you took your hatchback 4-wheel driving? However, off-road doesn't just mean doing jumps and doughnuts in the mud. If you try to do a U-turn in a paddock and a stampede of cows damages your car, that’s counted as driving off-road. If you park on the beach and your car gets damaged, that’s also counted as off-road, and is all the insurer needs to decline your claim. 4. Driving in unroadworthy conditions If you have an accident and upon assessment your tyres are declared to have had insufficient thread, your claim can be denied. It doesn't matter if you have a Warrant of Fitness, or if bald tyres had nothing to do with your accident. 5. Driving recklessly Burnouts and hand-brakies are a favourite past-time of many young folk these days, but attempting to do a manoeuvre in a car that goes wrong is means to have your claim declined almost immediately. There are a number of key things to remember when driving a car: always put on your seat belt, give way to traffic on the right, and make sure you've read the fine print of your insurance policy documents. These days you’d have to be pretty foolish to drive around without insurance. Damaging your car, or even worse, someone else’s, without insurance is a fast-track to debt. But something so many drivers forget is that even having insurance is not always a get-out-of-jail-free card. Your insurance policy will have so many special clauses and exclusions to give your insurer all they need to deny your claims, and put you out of pocket. Here are a few key exclusions to remember. 1. Breaching license conditions If you’re on a restricted license, and you have an accident while illegally carrying a passenger, your insurance claim can be declined. Even though your passenger had nothing to do with the accident, it still gives your insurer all they need to decline your claim. 2. Not securing your vehicle If your vehicle gets stolen, but you’d left the door unlocked or the window down, that’s another reason to have your claim declined. This one can get a bit tricky because there’s often nothing for the insurer to go on other than your word, so you could say it was locked – but that wouldn't be honest. 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

Recent News News > Helpful news and advice on your insurance, finance or mortgage needs. Advice All news Financial Insurance Mortgages How to know if a reverse mortgage is for you You've probably heard of a Reverse Mortgage, sometimes called a Home Equity Mortgage. With our aging population, they are becoming more common. Reverse Mortgages can be a good way to free-up money to spend on things you want - provided you're aware of the many pitfalls. Read More Top tips for keeping your house warm this winter Keeping your house warm over winter can be hard. It can cost a small fortune to generate enough heat to get your house warm, and then there are so many ways for cold air to take its place. Luckily there are some affordable and simple ways to keep your house warm this winter that don't require a big budget or a degree in rocket science. Read More Six Things Your Bank Will Never Tell You This information is adapted from Consumer Magazine (January/February 2006, Issue 455, Page 23). There’s something every person who uses a bank needs to understand—a bank is a business. It exists to make a profit and it does that by maximising the use of your hard-earned cash. Knowing how they do that could save you money. Here are six things your bank will never tell you: Read More Six Credit Card Traps to avoid Credit card can be dangerous! Many people in New Zealand today find themselves buried by inescapable debt that can be traced back to being overzealous in the use of their credit card. Sure, credit cards are handy. They provide an easy way to purchase things online or if you don't want to carry cash around with you, but it's so easy to forget when you buy something with your card, you are incurring a debt. And, once you get into credit card debt, it can be very difficult to get out of. Read More Nine Things to do to get Your Personal Finances in Order 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. Read More How to know you have the right insurance cover - Life Insurances Life insurances can be pretty confusing. There are so many products out there, and you never quite know which ones are best for you. And then, having decided on the type of insurance, there's the question of how much should you insure for? And when should you start with life insurance? Read More Show more news 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