How to find the right mortgage broker
We may be in the business of ensuring that you have the right insurance cover but we can also help ensure you get the best advice when it comes to getting a mortgage. Just like with an insurance adviser a mortgage broker does the hard work for you when trying to get a mortgage, working for you to get the best rates and terms for your mortgage.
What is a mortgage broker?
A mortgage broker is a person or company that will arrange a mortgage between you, the borrower, and a lender, such as a bank. A mortgage broker works one-on-one with you to find out your exact mortgage need then offers a range of options from different lenders (usually banks) which are matched to your mortgage needs.
Mortgage brokers will be on your side
Saving you time on form filling, by doing the hard yards hunting the mortgage market to find you a good deal.
Advising you on everything you need to know about taking out a mortgage and the house buying process, as well as KiwiSaver withdrawals and grants if you qualify.
Explaining to you the key details about each lender's criteria and finding the right lenders for your situation.
Are all mortgage brokers the same?
In short the answer is no. Mortgage brokers work around the country, either as part of a group or as stand-alone providers. Like any professional service, the exact service you will receive will depend on who your provider is.
Some mortgage brokers cover the 'whole of the market' (or as close to it as possible), meaning they don't have any links to a particular bank or banks. But some mortgage brokers are more limited, which means you may just be offered deals from two or three banks. These deals may not be the best in the market. It's important to ask upfront who your mortgage broker works with.
The key in finding a mortgage broker is to do your research, we suggest you use google to see reviews from other clients or obtain a referral from a trusted friend or family member or professional.
Should you pay for a mortgage broker?
No - you should never be charged to see a mortgage broker, there are no upfront or service fees. Mortgage brokers make their money from commissions paid to them by the banks. It is up to you to decide which bank and mortgage deal you want, the mortgage broker will be then paid by the lender you pick.
Remember
Mortgage brokers may not work with every bank, so it's important to ask upfront what lenders won't be included so it's clear what you are comparing.
A simple Google search will show lots of mortgage brokers awaiting your call. Asking family and friends for their recommendation is a good place to start.
You can also ask a trusted professional such as your estate agent, insurance adviser, lawyer for a recommendation.
Banks have their own mortgage advisors, so you can also make an appointment with your bank to see what they can offer.
Key questions to ask before making your decision
How many lenders do you work with? The more lenders (i.e. banks) the broker has a relationship with, the higher the chances you'll get the best deal. A good answer is at least five banks, but the more they cover the better for you.
What are your fees and commissions? You can ask that, even if they are not legally obliged to tell you. If they do, it will probably create trust and help you understand a little bit more about how mortgage brokerage works.