Need a home loan? Don’t know if you should use a mortgage broker or go directly to the bank? Not sure how a mortgage broker can help you?
Like you, these are questions everyday New Zealanders ask themselves when buying their first home.
Let’s face it, taking on a mortgage is one of the biggest financial decisions you’ll ever make and it’s important to get it right!
Not doing so can cost you thousands of dollars over the term or your loan and chain you to debt for longer than necessary.
What does a mortgage broker do?
A mortgage broker acts as an intermediary between you and the banks so you don’t have to deal with them directly. Since a mortgage broker works independently from the banks they will give you an unbiased opinion of your best mortgage options.
Here are just a few of the functions most mortgage brokers in New Zealand fulfil:
- Provides advice around the home buying process
- Clarifies your lending requirements
- Helps you get pre-approved with two or more banks
- Assists you with completing required paperwork
- Negotiates with banks on your behalf
- Presents the best mortgage option
- Submits loan application and manages loan approval process
- Works with you to devise a mortgage repayment plan
- On hand support when you want to reassess your mortgage
Why use a mortgage broker?
Currently, only 30% of New Zealanders use a mortgage broker for their home loans. This is surprising given that there are so many advantages to using their services.
To help you answer the question “why use a mortgage broker?” we’ve listed just a few of the top reasons below:
- Free – Many people don’t realise using a mortgage broker is free. That’s because their fees are paid directly to them by the banks.
- Make you money – Saving money on your mortgage will be the easiest money you’ll ever make. Since a mortgage broker has more negotiating power with banks than an individual, they can often get interest rates below the advertised rates. Their real value comes from ensuring you have the right loan structure and a repayment strategy that will pay off your mortgage as fast as possible – saving you thousands of dollars in the process!
- Trusted adviser – If you’re like other first home buyers, you’re probably finding the whole process daunting and don’t know where to turn for help? Especially since banks and real estate agents are never working in your best interest. A Mortgage Broker however becomes part of YOUR team, actively working on your behalf and guiding you through the process so that you avoid unnecessary stress and financial loss.
- Get you pre-approved – Before you know how much you can borrow for your new home, you need to get pre-approved from the bank. A mortgage broker will help you present your information so it is quickly and seamlessly approval.
- Save you time – The home loan process can be complicated and drawn out. Using a mortgage broker saves you time because they will guide through the required steps and what information the bank will need from you. This will leave you with more time to do what’s important – finding your dream house!
- Reduce your stress – Buying a new home is stressful enough, let alone having to negotiate and re-negotiate with banks to get the best mortgage package. Even then, you’ll never truly know if you got the best deal. Using a mortgage broker will removes this burden since they’ll do all the comparison and negotiation work for you. And since they deal in with mortgages day in and day out, they’ll know when they’ve found the best mortgage package for your particular situation.
In summary, using a mortgage broker not only makes sense financially but also for your peace of mind. This is especially true if you don’t have a background in the financial industry.
Want find out how much you can borrow? Then fill in our short questionnaire to discover how much you could borrow for your new home. Click here to get started.
Alternatively, schedule in a free, no obligations consultation with one of our friendly mortgage advisers. We’ll answer any of your home loan questions and help you determine if using a mortgage adviser is right for you. Claim your free consultation here.
With years of experience helping people like you, along with our background in the banking and debt consolidation industry, we’re in the best position to provide you with advice you can trust. In a matter of minutes we’ll answer all your questions and point you in the right direction – saving you time, money and a whole lot of stress.
Jeff Elias is a registered financial adviser. He worked previously as a mortgage debt reduction specialist and has an intimate knowledge of mortgages. He likes to look for creative solutions where required and enjoys showing people how to structure and pay their mortgage off quickly. Jeff is a father of four and enjoys tennis and walking his dogs.