Finding a New Zealand Mortgage Broker
When it comes to buying property, you really need to find a mortgage broker who knows what they are doing. Save yourself thousands by knowing what to look for in a mortgage broker.
If you’re in the market for a new home, you’ll have realised just how daunting the mortgage process can be. Gone are the days when we had one bank to choose from, and only one type of mortgage to choose. Nowadays there are so many different options, institutions, mortgage brokers and home loan packages out there. It’s almost enough to put me off buying for sure, but if you simply must have a new home it will definitely help to know what to look for in a mortgage broker.
Read on to find out all the things that the wrong mortgage brokers do not want you to know.
Lets start with what a mortgage broker actually does; a mortgage broker is a person who acts as an independent contractor. Their role is to act as a middleman between you and the lenders, by sifting through all of the home loan products to find one that will be best suited for you.
Don’t be confused by a mortgage banker, these are contractors that are employed by a bank to sell their financial institutions own packages.
One of the main benefits of using a mortgage broker is the amount of time you will save by comparing all of the different home loan options available to you. It is their job to stay informed about all of the mortgage packages available, so you can hope that they will have a better idea of what’s available out there.
Mortgage brokers do make their money from commissions from the banks. As you can imagine, you will be paying the bank a lot of money for a long time, so they don’t mind sharing a bit of this with a mortgage broker who brings the business in.
Each Bank will obviously have different commissions, so you really want to make sure that you trust that your mortgage broker is acting in your best interests and not just looking after his cut. You want to ask as many questions as you can about the commissions that the mortgage broker will receive.
You have to remember that mortgage brokers are still human, and human error is always going to exist, and just like any profession, there are those who are good and those that suck.
Here are a few tips to finding a good Mortgage Broker
Obviously the first and most trusted source is referrals, do you know anyone whose opinion you trust or respect. A good person to ask would be a tax advisor or a real estate agent that has a good reputation in your local area.
Just be weary about the real estate agents as they sometimes have an affiliate relationship with brokers and get a kickback for referring you there.
Always ask them why the person they recommend that particular mortgage broker.
Another sure-fire way to compare mortgage brokers is how desperate they are with their sales. Bad ones will constantly have to solicit themselves, where as a good mortgage broker will be able to sit back and live off their referrals.
If your mortgage broker has an office, you should definitely go check it out. Is it really busy, how hard is it to squeeze in an appointment? Also, is the office professional or just sleazy?
Another thing that you really should do is educate yourself first. Use the Internet to compare bank rates and have a look at some of the packages available so that you know if the mortgage broker that you speak to knows their stuff.
A good mortgage broker will usually be very well educated in finance, they will be able to show you exactly how much you will be paying and compare all sorts of different scenarios for you.
You really want a mortgage broker who will speak to you in plain English, instead of throwing in heaps of big words and jargon to try and make themselves sound more intelligent. If you don’t understand what they are saying, how can you know what you are getting yourself into?
You definitely want to make sure that the mortgage broker belongs to an independent complaints scheme, just in case the unforeseeable happens. In New Zealand this is the New Zealand Mortgage Brokers Association NZMBA This way you’ll have a way to follow anything that goes wrong or disputes that might arise.
When dealing with mortgage brokers, you really want to document everything. Make notes of all of the comparisons that they give you. Keep everything in an organized folder, remember it’s your word against theirs and you might need some evidence later.
- If they offer you guaranteed rates at closing, get it in writing.
- If an offer sounds too good to be true, ask for the fine print, it usually is.
- If something doesn’t feel right, it probably isn’t right, have faith in your own feelings.
Definitely go with your gut instinct when choosing your mortgage broker. It can save you a lot of money in the long run.
New Zealand Mortgage Broker Resources
