Most people buying their first home are so caught up in other decisions they actually spend very little time in seeking information regarding their mortgage, other than maybe getting a pre-approved loan.

So what decisions are you faced with at the time of buying your first home:

1. Where am I buying?
2. What sort of property is it?
3. Does the property have what I need?
4. Am I buying through a real estate agent or a property finder?
5. What are the different property titles and what do they mean?
6. When do I see a lawyer?
7. How do I negotiate a contract?
8. What clauses do I need in the contract?
9. When should I take possession?
10. I will need to give notice where I currently live?
11. I will need to disconnect and reconnect power and phone?
12. I will need to organise packing and a removal van?
13. What about house insurance, or contents insurance - I will need to change the address on the policy?
14. Do I need flat mates - when do I start to organise this?

AND on top of all this you need to arrange finance in order to be able to purchase the house.

Many clients have said they are looking for an expert that can give them the answers without them having to ask the question, as in most cases the clients didn't know what questions to actually ask.

A Mortgage Broker can help lead you through the mortgage application process from start to finish in a friendly, transparent way.

How did the Mortgage Broking Industry evolve?

Years ago, if you wanted to get a loan you needed to go to the bank and speak to your personal banker or branch manager. The banker had most likely been there for years and over time knew you very well. Customers rarely changed banks and the experience of applying for a loan was stressful and scary.

As banks changed and became like any other business - looking at meeting budgets and targets - the personal banking staff were streamlined and at the same time staff turnover increased, meaning the long term banking relationships no longer existed.

Mortgage Brokers came into the market, as they fulfilled a need. Clients could build a long term relationship with a broker, the process was friendly (not scary) and you could access all the lenders in one meeting. Along with this the broker could negotiate a very good package on your behalf.

All this, and the service the brokers offered was FREE because the lenders paid the brokers a commission.

What has changed?

 

The industry is now going through change.

So what does that mean for you, the customer?

If you previously went to a broker to find out what the lenders could offer and what the best interest rate was, you can now just as easily do this by searching on the internet.

So why use a broker?  Are we obsolete?

Most clients would say that the main search criteria is the interest rate; if this is the case then it would be much easier to simply search the internet.

BUT, is it all about the interest rate?

This is likely to be the largest debt you have - shouldn't you take care to look at all factors not just the rate. Shouldn't you also have regular reviews to ensure the best debt reduction strategy for you is in place? The extra things a broker can do for you...

1. Run a needs analysis to see what you need and what your future place are
2. To recommend suitable loan products, and advise why they would match your needs
3. Recommend ways to improve debt reduction
4. Help package, present, and negotiate your loan with the chosen lender
5. Assist you throughout the loan process all the way through to settlement
6. Liaise with any other professional if required
7. Some brokers will offer quarterly reviews just to make sure the loan you have is still the most suitable - your needs will change and therefore your loan needs will also change.
8. Some brokers may also charge fees for additional services, or extras that other brokers may not offer.

You cannot get this specialist advice from searching the internet, or even some banking staff.

You need to find an advisor that understands what you are trying to achieve and build a long term relationship with them. Choose a broker from the New Zealand Mortgage Brokers Association (NZMBA).

For further information please contact Connect Mortgages on:

1. 0508 more than mortgages

2. (09) 337 11 11

3. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

4. www.connectmortgages.co.nz

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