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.
What is a home loan adviser or a mortgage broker?
Home loan advisers and mortgage brokers work independently and in conjunction with a range of lenders like banks and other lending institutions. If you require a home loan, an adviser can consult with you and help you secure the best deal for your situation.
How much does it cost?
Working with a home loan adviser will cost you nothing. Advisers and brokers receive a commission from the lenders they work with.
How can an adviser save time and money?
With access to a wide range of home loan options, an adviser can assess your situation and offer you the best solution available to help you achieve your goals. An expert adviser can find you a competitive interest rate, set up a budgeting plan, assist with your KiwiSaver withdrawal and HomeStart grant, and can even help you structure your loan so you can become debt-free faster.
Doesn’t a bank do the same thing?
Banks have limited loan options and will present you with whatever they have on offer at present – however; this may not be the best offer available. Banks often have strict lending criteria and may decline your request for a loan.
An adviser has more options than a single entity like a bank, and is likely to get you a better deal – they can negotiate on your behalf based on your financial situation and lending requirements.
Why shouldn’t I just shop around myself?
Researching bank rates and fees and trying to figure out which option is best for you is time-consuming and can be downright confusing. Using a broker takes away the guesswork, saves you valuable time and energy, and even, better, an adviser will read the fine print and help you complete your loan documents.
I have been turned down by my bank for a loan. Can a home loan adviser help me?
Quite possibly. In many cases, brokers can secure finance for people who have incomplete financial records, issues in their financial history, or those who are self-employed.
How do I go about selecting a good adviser?
Choose a reputable, trustworthy, experienced adviser. Don’t be afraid to ask for testimonials, and check out online reviews and their website to make sure they are credible. An initial meeting will help you decide if you are comfortable and in capable hands.
This article is for informational purposes only and should not be considered as financial advice. It is always recommended to consult with a qualified financial professional before making any financial decisions based on your individual circumstances.