The question is not why should you use a good mortgage broker – the question is why wouldn’t you?
As Mortgage Brokers, we have a very important role to play as we take care of all aspects of your mortgage application process. We are completely independent to the lenders and we work for you and your best interests. We are heavily regulated by the FMA and as a result have to be Registered Financial Advisers and hold current professional indemnity insurance. The majority of the main Banks require mortgage brokers to be qualified for the advice that we give and therefore are required to hold the New Zealand Certificate in Financial Services (Level 5). We regularly up-skill ourselves to ensure we stay up-to-date with changes in the Banks credit appetite (this is forever changing), so we know which Bank prefers which type of deal and which type of client – giving every type of deal (no matter how big or small) the best chance for an approval. We’re pretty awesome at getting approvals too, with a current mortgage approval rate of over 97%.
All banks have to adhere to the Responsible Lending Code, therefore they all have their own strict servicing calculations to comply with this law. This means that one bank may lend you tens or even hundreds of thousands of dollars more than the other based on your financial circumstances. This is where the skill of good mortgage broker comes in. It’s our job to look at your application on its merits and quickly know at which Bank you are going to pass these servicing requirements and get the most favourable terms. Many times we have been contacted by a new client who has been “turned down” by their own bank as they didn’t meet servicing requirements. Rather than you going from Bank-to-Bank lodging multiple mortgage applications (which will start to affect your credit score) to see where you fit, let us do all the leg work for you.
Once we’ve got your new mortgage approved, then comes the most important parts – interest rates and how is the new mortgage going to be structured… A good mortgage broker will go into bat for you here and ensure you get you the best mortgage interest rates and the biggest cash contribution possible. These are normally better than what you could achieve dealing directly with the Bank. When you’re dealing directly with the bank, they will always try to structure the new lending in their favour, meaning you will likely have this new debt for the next 20-25 years (the Banks are financially incentivised for you to have this new mortgage debt for as long as possible). Using the services of a good mortgage broker, we can show you smart ways to structure your new lending which ultimately means you can be mortgage free much quicker.
The Rethink mortgage brokers are based in West Auckland (Hobsonville), however we assist many clients in Tauranga, Hawkes Bay, Wellington, Christchurch as well as other regions throughout NZ with their home loans. With technology today, you don’t need to have a mortgage broker in your Town or City as everything can be done online via Skype, Facetime and email. We have a great online mortgage application form which is accepted by all of the mortgage lenders in NZ.
The best bit is typically our service to you is free. Currently, for a standard residential mortgage through a main Bank, the lender pays the mortgage broker a commission, meaning that you get all this skill and professional knowledge at no cost to you! Which other profession can you think of provides that?
So as you can see, there are so many reasons why you should use a good mortgage broker. Let Rethink work hard for you on your next mortgage application and witness all the benefits first hand. It’s easy to get started.