A mortgage is one of, if not the biggest financial commitments we can make in our lives. For many home buyers, it’s a lengthy research process that involves looking at lots of different property and mortgage options. One essential decision is your choice of lender, and for most buyers this comes down to two options: a mortgage broker and a bank.
Mortgage Masters has extensive experience when it comes to finding home loans Auckland buyers are best suited for, whether they come from a big bank or another lender. Below, the team from our Auckland mortgage company outline the pros and cons of going through a broker versus a bank.
Visiting a Bank
Many people opt to visit a major bank when they need a home loan, especially if they’re an existing customer. This approach is usually popular because it’s easy and convenient, and you already have a relationship with them. Most major banks will aim to offer personalised services and try to get the best rate and deal for you.
It’s important to note, however, that your bank’s main role is as a salesperson for their home loan products. If another lender has a product better suited to your circumstances, they are not incentivised to direct you their way. In fact, they may not know about these other products in the first place.
Visiting a Mortgage Broker
A mortgage broker acts independently of banks and other lenders. Their experience and understanding of different home loan products, relevant legislation and market forces equips them with the knowledge to find home loans for varying individual circumstances. They play an important role in the property market by liaising with lenders and applicants to ensure the process goes smoothly for everyone involved.
By consulting a mortgage broker, Auckland home buyers can enjoy the convenience and security of having a professional oversee the process. This minimises stress, offers better response times and helps you get a better deal overall. If you don’t have time to explore the vast range of home loan products available or are uncertain about your financial situation when it comes to loan approval, visiting a mortgage broker is a great option.
Getting Approved for a Home Loan
Home loan requirements NZ home buyers are subject to vary depending on each bank or non-bank lender. Key factors influencing their decision include:
- Income
- Deposit amount
- Assets
- Financial commitments and debts
- Living expenses
- Credit history
Lenders are subject to regulatory guidelines to ensure home buyers are not offered loans that can’t be repaid.
How Can a Mortgage Broker Help?
By visiting a mortgage broker Auckland buyers can avoid the risk of their home loan application being rejected. This is because brokers factor in your individual circumstances, have a deep understanding of different lender’s criteria and know ways to improve eligibility and find alternative routes to getting you approved.
For example, if you’re unable to meet minimum deposit requirements with your own savings, a broker can arrange to use existing equity in a parent’s home or utilise government schemes to help. Another example is a self-employed applicant where it’s harder to provide information on income. A broker can help build cash flow projections to illustrate to lenders that they are financially secure enough to service the loan.
Free Consultations at a Trusted Auckland Mortgage Company
At Mortgage Masters, our team can help you find and apply for the best home loan Auckland property buyers can get. We always consider your unique situation to get you the best possible deal. To find out about home loan requirements NZ clients should get in touch today for a free consultation.
