Billion-dollar mortgage manager’s advice

The Canterbury banker has drawn down one billion dollars worth of home loans over 12 years. That’s at least one and a half million dollars worth of business each week. His efforts have earned him the Bank’s top prize in its annual national awards for the fifth time in nine years.

“The very best you can do is to pay off the maximum amount your cash flow will allow each week – not fortnightly or monthly – but each week,” Mounce advises.

“For example, rather than pay $2000 a month, or $1000 a fortnight, pay $500 per week if you can. You’re better off by $2000 a year, which can reduce the term of your loan by five years and save thousands in interest.”

“Today’s beer money adds up to tomorrow’s champagne. An increase in your payments by just $20 can take years off your loan.”

The next best thing you can do, says Mounce, is to pay off chunks against your principal when you can.

The award-winner, whose mortgage lending results are unbeaten across Bank of New Zealand for more than a decade, says it’s all about establishing good habits.

“Like rote learning at school, if you get into the right repayment habits from the word go, you’re set for life.”'

Mounce also suggests caution over the amount you put on revolving credit.

“No more than 10 or 20% at any one time. And ensure you can pay off the entire amount on the floating rate within the term period.”