Get a broker – your banking BFF
When you’re shopping around for a mortgage, do you know who wants to find you the best deal? Mortgage brokers. They want to find you the most affordable mortgage with the best terms for your lifestyle.
Your mortgage broker is your BFF
Banks are all about making money – after all, this is what their shareholders want. The bank makes money so that shareholders get dividends. But mortgage brokers are genuinely interested in finding you the very best deal. Their reputation depends on it.
If you’re hunting around for a mortgage, there are plenty of reasons why you should use a mortgage broker and avoid dealing with banks directly.
You get the benefit of insider expertise
Interest rates change, and the housing market in NZ is uncertain at the moment. Do you lock in five-year fixed term, or go for a floating rate? A mortgage broker has one job: to find you the best deal. Brokers know who offers what deals right now, and can predict interest rate changes, OCR increases and what the housing market is going to do.
While you may simply go with the provider who offers you the lowest rate, it’s important to look further than that. Are there exorbitant fees? Are you locked into a certain length of time, and if you break that agreement, will there be cancellation or early repayment fees? While that low rate may seem like a great idea, if you sign up for a long term and then interest rates drop, you may end up paying a lot more than you would if you could change providers.
Your loan request will be presented favourably
Just like you’d get your friends to check your assignments before turning them in, your mortgage broker checks your mortgage application. Brokers understand what the bank is looking for, and can tailor your application so it’s presented in the best possible light.
They love filling in forms. Seriously, mortgage brokers would rather fill in forms for you than relax on a beach in paradise. They’ll ensure you include everything the banks want, accentuating the positive and explaining anything that could be seen as negative.
You don’t have to do the hard work yourself
As any great boss says, if you can’t do something, delegate to someone else. If you don’t understand the ins and outs of finding an optimal mortgage, get a broker to do the work for you.
Brokers know the current market, they know the fine print to look out for, and they understand the legal jargon so you don’t get caught out.
They can advise you on interest rates, bank fees, the current housing market, conditions of borrowing and what colour you should paint your front door (red, for Feng Shui). Why fill up your brain with this information when they already know it?
You don’t have to pay them
For standard residential mortgages, brokers are paid by the mortgage provider. This means you get all this knowledge and the benefits of the best deal for you – for free.
You get more bargaining power
A good mortgage broker is someone that banks like to keep on side. Brokers represent a lot of mortgages and a lot of income – but you on your own have just one, measly mortgage. You have very little leverage compared to a broker. On your behalf, they will ask for the lowest possible interest rates, better terms, and cushy kick-backs so you can pay off your mortgage faster. They may even be able to talk the bank into lending you more than you would get on your own.
If the banks say no, they can probably find you a yes
If you’re having problems getting the mortgage you need, a broker can help. Often, your best option may not even be a bank. When a bank says no, sometimes a reputable alternate provider will say yes. A mortgage broker will know where to turn so you get the funds you need, and at reasonable terms.
If you have a less-than-perfect financial history or a smaller deposit, a broker can also help you hatch a plan for increasing your chances of being accepted.
You can trust your BFF broker
About 40% of all mortgages in New Zealand are arranged by a broker, and this number increases every year. Of that number, about 51% of users were very happy with the service they got – great deals on their mortgages and value from the transactions.
It’s obvious why people are so satisfied with their brokers – saving time and money makes for happy customers. So even if you think your bank will fall over itself to look after you, it’s worth approaching a broker to see if you can get an even better option.
Give Float a call. We can chat about what you’re looking for, how we can help you get what you want, and what forms we can fill out for you!