| If you need to get a home loan, you can generally go about it in three different ways: applying directly with your bank, consulting a mortgage broker or shopping around for a loan yourself. Many Kiwis go with a major bank as it seems the easiest and fastest option. By reaching out to a mortgage broker Auckland borrowers can actually speed up the process and secure a better deal.
Mortgage Masters are an Auckland mortgage company with over 40 years of experience. Below, we detail how mortgage brokers improve the process of finding the right home loan for your circumstances.
The Role of a Mortgage Broker
A mortgage broker acts as an intermediary between borrowers and lenders. They look at your needs and circumstances, researching the various products on the market and finding the best loan for you. A good Auckland mortgage company will also offer specialised advice and services. For example, a commercial mortgage broker or a broker who specialises in helping first home buyers.
A mortgage is one of the biggest debts you can incur so it’s important to find one with minimal interest payments, fees and terms and conditions that suit your situation. Keep in mind that when using a mortgage broker Auckland borrowers don’t get charged for these services. Instead, mortgage brokers are paid a commission by the lender once the mortgage is settled.
Finding the Right Loan for You
Whether you’re a first home buyer, a seasoned investor or need a mortgage to buy commercial property, brokers find the best option for you based on your finances and personal situation. At your appointment, your broker will look at your current financial situation as well as what you want to achieve, discussing:
● Your eligibility for a loan
● Your borrowing capacity and repayment management
● Your capacity to pay for a loan
● Lender costs
● Lenders Mortgage Insurance (LMI)
The best mortgage broker Auckland buyers can find will determine how much you can borrow from various lenders as well as the maximum amount that you should borrow to protect yourself.
Brokers are independent and do not favour any one lender. It’s lenders who compete for the attention of brokers, who seek out the best deal from one of the dozens of lenders with whom they are accredited. Brokers are paid the same amount regardless of whether you pay 4 per cent or 10 per cent interest, meaning there’s no incentive to make you pay a higher rate.
They can also offer specialised advice. For example, if you need a mortgage to buy commercial property, you can consult with a commercial mortgage broker for tailored advice on your business plan. Brokers can also offer expert advice on insurance, property investment and the various government schemes available that you may be eligible for, particularly first home buyers.
Do Mortgage Brokers Get Better Deals?
If you have a good credit history, stable income, and you’re an existing customer, there’s a good chance your bank will offer you a decent home loan. However, you may not get the best discount you can. If you’re refinancing your loan, banks don’t always pass on rate cuts to existing customers. An independent mortgage broker can be advantageous for various reasons:
● More options for people with bad credit or income issues
● Save time by avoiding applying with multiple lenders yourself
● Brokers are easier to get a hold of quickly than a big bank
● Brokers can find the best features, rates and lowest fees for your specific circumstances including features like fixed, variable, split rates, offset accounts and non-standard loans.
If your bank does offer the best deal for your circumstances, your broker will know that and recommend them.
Helping You Get Pre-Approved Faster
A mortgage broker can speed up the process of getting a loan by collecting documentation (e.g. payslips, bank statements, credit card statements, expenses, etc.) and creating a full assessment of who you are, what you do, what you own, your dependents, your employment status, and existing loans. From there they can find ways to improve the likelihood of securing credit. For example:
● Extending your home loan terms to reduce committed expenses
● Consolidate debt so you can borrow more
● Cancel your unused credit cards
● Review your bank accounts to make sure you aren’t missing automatic payments or going into unarranged overdraft
Once you are satisfied with one of the loan options put forward, they’ll get you pre-approved with that lender so you can go out and start looking for properties, knowing exactly how much you can spend.
Free Consultation from the Best Mortgage Broker Auckland Has
At Mortgage Masters, the independent advisors at our Auckland mortgage company can help you find the right mortgage for your unique situation and goals. Whether you need help from a commercial mortgage broker or are interested in property investment, get in touch today for a free consultation.
What is the Mortgage Broker Process in Auckland?
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