When you enter the home buying process, you’ll want to find yourself a reputable mortgage broker. With all the jargon swirling around in the world of home buying, it can be a little confusing to know who you need to have on your team.
So, What is a Mortgage Broker?
A mortgage broker is a person or company that will help you navigate the home loan process, from the initial search, to application, to the final process. They will help arrange the mortgage between you and the lender. Your lender may be a bank or a non-bank financial institution. A mortgage broker will work closely with you to find the right mortgage for your individual needs. They will be your guide through the hectic process of getting your first home. So you really want to find the right broker, someone who makes it easy and you can trust.
Why a Mortgage Broker?
A mortgage broker will be your best advocate (besides, perhaps your lawyer). They have a duty of care to provide you with the best advice and to justify the reasons, in plain language, why they have recommended you particular lenders and mortgages. The home buying process, especially for first timers, can be a
A mortgage broker knows the industry. They will have connections to a vast range of lenders, both banks and other financial institutions, and will help unlock a wider array of opportunities for you to comb through. While this may seem overwhelming, having more options available means that, together with your mortgage broker, you can compare the different mortgages and find the best deal that will most suit your unique needs and home buying goals.
A mortgage broker will also help shortlist the best selection of mortgages. The mortgage broker will present their shortlist of mortgage deals based on:
- Your income
- Your deposit amount
- Your credit history and how much your mortgage repayments can be, based on your affordability
- The type of home you are planning to buy – such as a new build, existing, or apartment
- The interest rate
- The required deposit
- The upfront fees
- The term of the mortgage
Who Needs a Mortgage Broker?
In New Zealand, first time buyers tend to make up the bulk of the customer base for mortgage brokers. So, if you are a first time buyer, you will likely find that a mortgage broker is absolutely worth their weight in gold, as they will help you navigate the process. If you are seeking a home purchase for investment purposes, a mortgage broker is also a good idea, as the loan requirements for an investment property are different. An investment property requires a lengthy process, with lots of steps, and things to consider. A mortgage broker will help guide you through the process and ensure you are on the track that is best for you.
Are There Any Cons to Working with a Mortgage Broker?
The only thing to bear in mind is the cost. With a mortgage broker, you won’t have to pay any upfront fees to them. However, the lender does pay the broker a commission which will be included in your total mortgage value.
Any broker will explain this process to you to make sure that everything is laid out and transparent. It is also why they’ll want to do such a good job for you, because if you’re not happy with their service and/ or you end up in a house, they don’t get paid. So they will want to do a good job and help you into your home!
Money Compare can Help
Money Compare is a great tool that allows you to compare different loans and interest rates, so that you can find the best deal. You can also use Money Compare to find the right mortgage broker. It is important that you find one who is reputable, has experience, and has plenty of positive reviews.
Need Help? Our experts offer FREE advice
Here at Money Compare we have experts on hand to help with any home loan or mortgage query - simply request a free call back by clicking the button below and a fully qualified mortgage adviser will be in touch.
