Another OCR drop? Three smart ways to restructure your mortgage now.
Lisa and Tom had $180k of usable equity locked up in their Tauranga home and a bank that kept saying 'maybe next year'. Here's the structure MHQ used to get them across the line — interest-only, equity recycle, lender switch — and the four-year plan that followed.
Zhiyang Cheng,
Mortgage Adviser & Sales Manager
Advice for every stage, all our knowledge in one place.
How often should I review my insurance?
Think of insurance as something that moves with your financial journey, not something you set once and forget. A review makes sense when you buy a home, take on more debt, change income, start a family, enter a relationship, separate, grow a business or build meaningful assets. Even without a major event, a regular check helps make sure you're neither underinsured nor paying to protect risks you can now carry yourself.
Can insurance become unnecessary as I build wealth?
Absolutely, and that's an important part of our philosophy. Insurance transfers financial risk that you aren't yet comfortable carrying yourself. As debt reduces and investments and liquid assets grow, you may be able to retain more of that risk yourself. That can mean reducing certain cover and redirecting premiums toward debt reduction or investment growth.
Can you compare different insurance companies for me?
Yes, where those providers sit within the specialist adviser's approved advice panel. The important comparison isn't simply premium versus premium. Policy definitions, exclusions, benefits, underwriting outcomes and how the cover fits your overall protection strategy all matter.
Should I get insurance while I'm young and healthy?
There can be advantages. Insurance is generally influenced by factors such as age, health, occupation, lifestyle and the amount of cover requested. Getting protection in place before your circumstances or health change can make future insurability less of a concern. But the right time and amount still depends on your individual needs.
Will my medical history stop me from getting insurance?
Not necessarily. Your health history may affect the terms offered, resulting in standard cover, an exclusion, an additional premium, modified terms or, in some cases, cover not being available. The adviser helps you navigate this process before deciding what's appropriate.
What is Income Protection and who needs it?
Income Protection can provide a regular payment if illness or injury prevents you from working and you meet the policy criteria. It's particularly relevant when your lifestyle, mortgage or family depends heavily on your ability to keep earning.
Isn't ACC enough in New Zealand?
ACC plays an important role, but it primarily covers injuries and accidents. It does not provide the same protection for illnesses, which are also a major reason someone may be unable to work. Personal insurance can help address the gaps that ACC does not cover.
What does Disability Insurance actually protect?
Disability-related cover is designed to protect you financially when illness or injury significantly affects your ability to work or live independently. Depending on the type of policy, it might provide a lump sum or ongoing income. The definitions matter, which is why comparing policies on price alone can be misleading.
What's the difference between Life Insurance and Health Insurance?
Life Insurance generally pays a lump sum if you die or, depending on the policy, are diagnosed as terminally ill. Health Insurance is designed to help fund eligible medical treatment and give you greater choice and access to private healthcare. They solve very different financial problems.
I already have insurance. Do I still need advice?
Possibly even more than someone starting from scratch. Existing policies can become disconnected from your life as mortgages reduce, salaries increase, families change and wealth grows. A review helps identify gaps, duplication and cover you may no longer need.
How much insurance do I actually need?
There isn't a magic number. We look at your debt, income, family responsibilities, existing assets, investments and future plans to work out what would create a genuine financial gap if something happened. The goal isn't maximum insurance. It's the right amount of protection.
What types of personal insurance can you help with?
The core areas are Life Insurance, Health Insurance, Income Protection and Disability or Total and Permanent Disability cover. Depending on your situation, the advice process may also consider trauma or critical illness cover and other forms of personal protection.
Does commission affect which insurer you recommend?
It shouldn't determine the recommendation. Your advice should be based on your circumstances, needs and goals. Financial advisers in New Zealand have duties that include giving priority to the client's interests and exercising care, diligence and skill. Relevant conflicts and commissions must also be disclosed.
If the insurance advice is free, how does the adviser get paid?
When you take out an insurance policy following advice, the insurer will generally pay the insurance adviser a commission. This means the cost of getting advice does not usually need to come out of your pocket separately. How the adviser is paid, including relevant commissions or incentives, will be disclosed to you as part of the advice process. New Zealand disclosure rules specifically require advisers to explain relevant fees, commissions and incentives.
Does it cost anything to get insurance advice?
In most cases, there is no direct advice fee for arranging your Life, Health or Disability insurance through our specialist advice service. If any fee could apply, this will be explained to you before you proceed.
What is the biggest KiwiSaver mistake people make?
For many people, it’s not making a terrible investment decision. It’s not making a decision at all. KiwiSaver can sit quietly in the background for decades. The provider you joined years ago, the fund you defaulted into and the contribution rate you never revisited can eventually become a very large pool of money.
When should I start reducing risk as retirement gets closer?
There isn’t one birthday when everyone should suddenly become conservative. As retirement approaches, we look at when you expect to access the money, how much you'll need in the early years, what other assets and income you have, and how much investment volatility you can absorb. From there, risk can be reduced strategically rather than switching everything at once. That is the thinking behind your Strategic Risk Reduction stage.
Should I put extra money into KiwiSaver or pay down my mortgage?
It depends, and we think this is where joined-up financial advice becomes valuable. Paying down debt gives you a relatively predictable benefit through interest saved. Investing gives you access to potential long-term growth but with investment risk and less liquidity in KiwiSaver. Your mortgage rate, timeframe, tax position, risk tolerance and financial goals all influence the decision. The important thing is not to treat your mortgage, KiwiSaver and wider wealth strategy as completely separate conversations.
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