5 benefits of using a mortgage broker

If you’re looking to take out a home loan, it’s likely you’ve heard about mortgage brokers. But what do they really do? What’s the difference between a broker and a bank – and what are the benefits?

A great mortgage adviser will guide you through the process and offer expert advice, to help take away the stress and hassle. Less admin and paperwork for you means you have more time to focus on the big goal – finding your dream home.

Here are five benefits to using a mortgage adviser.

They work for you, not the bank

While mortgage advisers have great relationships with the banks and other non-bank lenders they work with, they don’t work for the bank. As their client, the adviser works for you, to find you the home loan that best suits you and your individual circumstances. 

It’s not just about the loan

Many first home buyers forget it’s not just about getting the mortgage – there are so many steps and decisions along the way, which can have a big effect on your long-term plans. It’s your mortgage adviser’s job to guide you through the process and ensure you feel comfortable and informed all the way through the journey.

Your mortgage adviser will help you understand the home loan application, get you pre-approved and help you decide your mortgage structure and what repayments you can afford. Your adviser will also negotiate the best rates and other incentives, like a cash contribution from your bank to put towards your legal fees. Blandon Leung, Mortgage Adviser at iRefi, says a good mortgage adviser is like befriending a local when you’re on holiday.

“When you go overseas, the best trips are when you meet a local who takes you around town. You get the inside word on where to find the best spots, the best deals and the tastiest food. The same happens in banking. With a great mortgage adviser, you get the inside scoop,” says Blandon.

They come at no cost to you

When you buy a home or refinance, your mortgage adviser is paid a commission by the bank or lender you have chosen to take out your loan with. Because the adviser’s fee is paid by the bank or lender, their service usually comes at no charge to you.

They can offer you the best deals, from many lenders

When choosing your mortgage adviser, it’s important to get an understanding of the range of products they offer. While it’s true that some advisers only offer products from one or two banks, accredited advisers like those at iRefi.co.nz can offer you a choice of products from eight banks and ten non-bank lenders. This means you don’t need to spend valuable time shopping around different banks one by one when you could be busy house hunting instead. Once you’ve talked with your mortgage adviser and worked out your property goals (and dreams) your adviser will do all the legwork to pull together offers from various lenders, for you to choose the deal that suits you best.

It’s a valuable relationship that can last years

When buying a home, it can be easy to pop the champagne on settlement day and feel like you are “done” - but it’s important to remember that taking out a home loan is, on average, a 25 to 30-year commitment. Buying a house is likely one of the biggest financial commitments you’re ever going to make, so having a great mortgage adviser by your side means you can make the most of your investment over the long term.

For example, you might have locked your mortgage into a fixed interest rate for two years. After two years, it’s time to revisit your trusted adviser to explore options to refix, restructure or refinance. After five years, you might find it’s time to upsize the family home, or you might have enough equity in your house to consider purchasing an investment property. These are all options that your adviser can help guide you through, to provide the advice and support you need to make your future property goals a reality. Sometimes, achieving these goals can take time, so having a strong relationship with your adviser is valuable in the long term.

The team at iRefi.co.nz believe in mortgages made easy. Their online home loan experts work with banks in New Zealand and non-bank lenders too, to find the mortgage that’s right for you. Use the 90-second mortgage snapshot tool to instantly see your borrowing power and savings options.