Wealth Design- 10 Minutes
What is a mortgage broker you might ask?
According to Wikipedia the official answer is:
“A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses.
Traditionally, banks and other lending institutions have sold their own products. As markets for mortgages have become more competitive, however, the role of the mortgage broker has become more popular. In many developed mortgage markets today, (especially in Canada, the United States, the United Kingdom, Australia, New Zealand and Spain), mortgage brokers are the largest sellers of mortgage products for lenders.
Mortgage brokers exist to find a bank or a direct lender that will be willing to make specific loan an individual is seeking.
Mortgage brokers are regulated to assure compliance with banking and finance requirements.”
As a broker I deal with a number of lenders so I can save you the time and effort of shopping around. Some of the key advantages of using my services are: I know the interest rates and application criteria for different lenders, and can negotiate on your behalf.I put your loan application together - so you don’t have to.I may be able to help you find a loan if your bank says no, and may be able to get a better deal than if you went direct.
· I am your “banking advocate”. I speak bank language as well as normal speak!
· I am available 24/7 to answer questions
· I come to see you, when it suits you
· I have the ability to source competitive interest rates in the market
· If your bank says no, I have easy access to a “Plan B” Or Plan C!
· I have20+ years’ experience in Banking and Finance (so I speak their language)
· I communicate with you the whole way from our first meeting, to approval, to the purchase, to the settlement of your home
· I work closely with your solicitor and accountant to make sure the transaction is smooth and timely
AREN’T ALL BANKS THE SAME?
NO!! The banks and non-bank lenders all have different criteria and use different methodologies to assess your loan. So while one lender might be able to lend $300,000, another might only be able to lend $275,000, the third $200,000k and the fourth $400,000. One might even not be willing to help at all. This is how much variance there is with lenders in the market at the moment – so it’s my job to know who’s doing what and therefore who might be the best lenders to approach on your behalf.
I have access to more than 15 different lenders - these include the 4 big banks, non-bank/specialist lenders and a raft of niche lenders. These non-bank lenders are great in that they offer loan options for people who may not meet the lending criteria of the top banks. Non-bank lending is a growing market and I am seeing more New Zealanders turning to non-bank lenders for their home loans.
Over the past year, New Zealand banks have been stricter about their lending criteria, however, non-bank lenders are not so strict. They are also not bound by the loan-to-value restrictions that limit mortgage lending to borrowers with small deposits, although borrowers will usually be able to access better rates if they have more equity in a deal. Non-bank lenders also a good option for small-scale developers and builders who did not have a strong enough reputation to borrow from a bank, or self-employed people who did not have solid financial history.
Maybe you have changed jobs recently and don’t have a long employment history. Maybe you have had a bad year and had to restructure your business. Maybe you have got tax arrears or bad debt. Maybe you have even been bankrupt. Maybe you are a developer or looking for commercial finance. Maybe you have no financials or are new to business. Non-bank lenders are willing to overlook these facts and take a look at your loan request.
Non-bank or specialised lenders are seen as a method to “get you in the door” with the aim that you will be main bank ready in 12-24 months. At that stage, I look to refinance you back to a main bank.
I love what I’m doing now as I have so many options for obtaining finance for my clients. I am not limited to asking one lender for money. Ideally, I like to work with your own bank first – for me, it’s not about changing your bank, and it’s about getting you the best deal possible from your bank. If you want to move, I will move you, but as the saying goes “if it aint broke, don’t fix it”.
Typically the banks pay me brokerage, so I get you the best deal and it might not cost you a dollar!
You may very well already have a mortgage (or two or three!), but do you have someone who can talk to the bank in their lingo and do the best for YOU? Someone who knows what the market is doing and what competitors are offering?
That’s what I do as your Mortgage Adviser. I am with you every step of the way – my job doesn’t just end when you get your loan, I keep in touch with you on a regular basis just to see how everything’s going and have a general catch up.
The question I get asked most often now is “what do you do?” My answer is always “I save you money and I save you time – two things that we can never have enough of!”
Let me be your banking advocate and save you time and money.