No matter how good your bank is, or how helpful the person at the bank is they can only ever provide you a limited number of home loan options – the home loan options that the one bank has available.
Compare this to a mortgage broker that has a range of home loan options for you which include most of the bank options, a range of non-bank options and is often able to create specific options using a combination of lenders.
What Bank Staff Say
Bank staff will tell you and many of them may even believe that they can provide a better deal and offer better advice than a mortgage broker.
The reality is most bank staff have limited ability to get you a better deal and their skills are typically limited to the in-house training they have had on just their own bank products.
Of course this makes it difficult for bank staff to offer the best deals and best advice.
Mortgage Brokers Offer Home Loan Options
Of course many people including bank staff really have no idea what brokers do.
When people do understand how mortgage brokers operate they may understand why a good broker can offer so much more than someone at the bank can.
Most mortgage brokers in New Zealand will be able to offer you a choice of home loan options so once they understand what is required they can source the most suitable home loan. Unfortunately a number of “so called” mortgage brokers are working for companies that are owned by banks and while they pretend to act for you, they are really employed by the banks and will therefore push that banks home loan products.
There are some well-known brands in New Zealand that are owned in whole or in part by the banks. If you are speaking with Mike Pero or New Zealand Home Loans you might want to ask about ownership.
The key is to find a mortgage broker that will work for you – not the banks.
Ask any mortgage broker about the choices available to ensure that they will consider the various home loan options for you. They will know about the options so they will compare apples with apples.
People Are All Different
Everyone is different and their financial situation will no doubt be different too.
Most people have little interest in mortgages unless they are actively looking at getting a mortgage when the most common question is what is going to happen to the mortgage interest rates.
They are far more interested in the new home they are about to move into.
People who are about to commit to their largest financial commitment (the home loan) should take more care to ensure that they get it right, but they often are not even aware of the differences between the banks and the various home loans they offer.
You don’t have to accept the ‘offer’ that a bank provides – it is only their offer and quite often when you show the offer to a mortgage broker they will be able to tell you if the banks offer is a good one, or they can speak to the same bank and get them to sharpen up the offer for you.
Let A Mortgage Broker Save You Money
If mortgage brokers didn’t provide a good service they wouldn’t exist. A broker can save you money in a number of ways;
- A good mortgage broker knows which banks would accept your application and are able to sort through all the home loan options to ensure that the loan recommended to you is the best option.
- A broker will negotiate a with the banks to ensure that you get a good deal, and can even deal with your existing bank if you are happy to stay with them.
- And most importantly, a good broker will work with you over the years to ensure you can pay your mortgages off faster and therefore save you thousands of dollars.
People often think that a mortgage broker’s job finishes when you get the mortgage.
A good mortgage broker will continue working with you while you still have a home loan or any financing needs, and having a good adviser on your side can make all the difference.
Should Kiwis Use A Mortgage Broker?
This is a very good question, and I think you would now agree that the answer of course is “yes” and for some very good reasons too.
Having a range of home loan options available means a mortgage broker has choice. It may be that BNZ have been helpful and they may even have the best option for you today, but will they tell you to go down the road to Westpac when next week it is the best option. A mortgage broker knows that the bank that seems best for you today might not always be the best option.
You can share the knowledge you have learned today or better still you can share this article with your friends, family, social media followers and associates. This is a very simple way to help those people.
