By Richard Flinn

“Pay off the mortgage before you start saving.” If you look at some sources of information that offer advice on saving effectively, you may find this is their advice. However, it is not always this simple.

The key argument for this advice is based around comparing returns. Assume a mortgage rate of 9% and a current interest rate of, say, 6%. You have an economic choice as to where to place your next saved dollar. You could put it towards paying off your mortgage, or you could invest it for a return of 6%.

Asset price bubbles have been with humanity almost as long as assets – even the venerable Isaac Newton, certainly nobody’s fool, lost his shirt (and ₤20 000) in the South Sea Bubble of the early 1700s. Yet, despite their frequent recurrences, it seems people never really learn from these outbursts of economic exuberance.

By Joan Baker

Most commentators and others in the know think that residential property prices are likely to flatten off or even decline fairly soon.

Even though they have been saying this for a year or more, they are probably going to be proven right some time fairly soon – everything seems to point to the market finally coming off the boil.

And the pot certainly has been bubbling away – the last few years have seen most markets greatly increase in value, making some people very wealthy indeed.

By Mary Holm, independent financial writer. Article reprinted from Holm Truths* with permission from Mary Holm.

Revolving Credit Pros

• Get credit for income & savings
• Can borrow for other things
• Flexible payments

Revolving Credit Cons

• Requires discipline
• Variable rate only
• Monthly bank fee

Traditional Pros

For interesting and informative articles relating to Lending, click on one of the items under 'Related Articles' to the left.

You can tailor our term and seasonal rural loans to suit your needs.

Term loans – can help you purchase capital items. You make regular payments of principal and interest

Seasonal loans – are like a large overdraft facility – they tide you over when cashflow is low. You can deposit and withdraw funds any time.

The amount you can borrow depends on your farm’s income, the property you want to buy and many other factors including your farming background, qualifications and experience.

Building a new home is complex, especially starting from scratch with just a block of land.

It requires planning, preparation, organisation, management and know how. But don't be discouraged - millions of people have done it before you!

Here are a few tips and guidelines to help ensure you succeed. This information is provided as a guide only and you should rely on your own research.

The investment property market can be a minefield, so it pays to do some research first. This information is provided as a guide only. We suggest you use it as a launch-pad for your own research. Understanding the market, choosing the right type of property and knowing how to avoid the hazards are the keys to making property investment work for you. Here are a few pointers to begin your research.

A business decision

Buying a home can be one of the most exciting times of your life. Being prepared means you’ll get to enjoy the experience! We hope these tips and suggestions on buying a home make your experience outstanding. This information is provided as a guide only; we suggest you use it as a launch-pad to your own research.

Research the loans available

Before choosing a loan, research the loans available. We have access to a variety of loans from different providers including fixed and floating rates.

Calculate how much you can borrow

What will my home loan repayments be? See the impact of changing the total value of the loan, term and interest rate. You can also find out how much difference paying a little more now could make over the long term by increasing regular repayments or making a ‘one off’ lump sum payment.