The benefits of using a mortgage adviser (mortgage broker)
Six ways a mortgage broker can help you
When looking to borrow money for a property, many people don’t realise the benefits that working with a professional and experienced adviser can offer – including helping them get the best overall mortgage deal. Using a mortgage adviser could save you tens or even hundreds of thousands of dollars over the lifetime of your mortgage. Here are the top six advantages of using a mortgage broker (adviser):
1. Knowledge and guidance
The property market, relevant regulations, and lending environment are all constantly changing. This means up-to-date subject matter knowledge could make a massive difference to your circumstances. For example, while a 20% home deposit is desirable, recent changes mean that in many instances, first home buyers can now purchase with as little as a 5% deposit.
Advisers are aware of the different rules and preferences for each bank, meaning you don’t have to do the research yourself to find a bank that might be most accepting of your financial situation. They’re also able to help you weigh up the pros and cons of different lenders and loan structures.
If you aren’t yet able to purchase a property, a mortgage adviser will usually be able to tell you this before you send in an application that may get rejected and damage your credit score. They will also be able to tell you how you could work to improve your situation and give you an idea of when you may be in a better position to purchase a property.
Navigate complex terminology
Terminology can also change regularly, so it pays to have someone on your side who can assist you in working through the jargon. This ensures you have a clear understanding of each step along the way, and also helps you avoid common mortgage traps.
2. An advocate in your corner
Bankers work for the bank. Real estate agents work for the seller. We work for you – the home buyer.
Better still, two key things may also separate the team at Become Wealth from other mortgage advisers:
They are qualified, ready, and willing to give advice on investments such as KiwiSaver or other financial matters too.
All our advisers (brokers) are paid a salary, not commission. This means that no matter your situation, they will provide advice that is best for you – not what will put more money in their own pockets.
3. We save you money
Because mortgage advisers deal with a variety of different banks every day, they have more power to negotiate than you do. They usually have access to more competitive interest rates, and know which banks are currently offering the best deals.
A loan to suit your needs
What’s often overlooked – and is probably more important than interest rates – is that a good mortgage broker can assist you to choose a great loan structure for your personal situation, ensuring that you are paying your mortgage off as quickly as possible. This can save you from paying a lot of mortgage interest over the long run – and depending on your situation, they may be able to reduce or fully waive some of the initial fees that banks usually pass on to customers (such as application fees).
In many cases they can also obtain great benefits for you, such as a mortgage cash back.
4. Service without cost – it’s free
Remarkably, this is all free to you, as Become Wealth will be paid by the lender. We'll also transparently inform you about it, and as we pay our advisers a salary instead of commission, you know we're truly working in your best interests.
5. We do the work for you
When applying for a mortgage without an adviser, if you want to shop around, you must send in a different application to each individual bank. A mortgage adviser can do this for you, meaning that you just need to send one application to us, and we will compile specific information to send to each bank. From there, we will liaise with the bank or banks, so you don’t have to spend a lot of time going back and forth with them yourself.
6. Reduce stress with one point of contact
Most people looking to purchase property are probably already stressed enough with all the things that need to be done before their mortgage settles, but a mortgage adviser will do a lot of the work for you – letting you focus on more important matters.
A financial adviser (mortgage broker) is there to help you through the process every step of the way, including recommending other professionals as and when you need them.
Streamlined application process
Better yet, with our new online application portal a mortgage application can be filled-in from the comfort of your own home in as little as 20 minutes!
The bottom line
A mortgage adviser can save you time, stress, and money – and you don’t need to pay a cent for their services. Here are the top six benefits of using one: