Plenty of ASB Home Loan customers are switching to a Go Home Loan and there are a couple of very good reasons.
You might ask why ASB Home Loan customers are switching to a Go Home Loan? Plus, what is a Go Home Loan?
About The Go Home Loan?
Interestingly a Go Home Loan is actually part of the ASB suite of home loans, and that makes it really simple to switch. But that’s not the sole reason to switch switch a home loan.
But ASB customers should look at changing once they see some real benefits.
The Go Home Loan offers everything that the ASB Home Loan will offer – with the same interest rates, the same internet banking and banking app, and all the same transactional features.
There are no real negatives when switching.
Where the Go Home Loans really excels is in the underlying structure that the home loan has been built on. It’s something that is rarely talked about, and most people would not even know that it is different.
The Go Home Loan uses a revolving credit structure beneath every fixed home loan, and that offers a lot more flexibility than the standard home loans offered by ASB and most other banks in New Zealand too.
Flexibility Is Important
With the Go Home Loan, you have more flexibility than with the ASB Home Loan.
You can adjust your mortgage repayments without automatically decreasing the loan term, and that means you can effectively revert back to the original loan term at any time when your loan comes off fixed.
What this means is you can pay extra on your home loan at times when you have available funds or when interest rates are low, but then when finances are tight you can revert back to a minimum home loan repayment – and then increase again when you can afford to.
It gives you control and the flexibility to adjust your mortgage repayments to suit what is happening in your life at that time. It’s especially good for first home buyers who are generally younger and maybe wanting to start a family within the next few years.
Before starting a family, they can pay extra on their home loan to get ahead. Then if they go down to one income, they can adjust the repayments to the minimum at that time. The more they’ve been able to get ahead on their home loan, the less that minimum would be because it’s still stretched out over the standard loan term, which may have started at 30 years.
It also offers a lot of protection for those times when interest rates increase.
The other advantage of having an underlying revolving credit loan is that you can have more than one revolving credit account, and all with no fees. There is no limit on the amount that you can have on revolving credit or on the number of revolving credit loans you can have. The benefits of this are huge if you’re planning to invest, as you can pay your mortgage off and then redraw it to invest in either property or other investments.
As you can see there are a few very good benefits with a Go Home Loan.
Switching to a Go Home Loan
It really does make sense to switch to a Go Home Loan.
There are some real benefits that you could be grateful to have. We know that a mortgage is a long term commitment and therefore having flexibility is important both in the good times and the hard times.
The mortgage advisers at Mortgage Managers can explain the benefits in more detail and can arrange the switch too.
