With low home loan interest rates and a relaxation of lending restrictions, you might find
your self-thinking about getting into the property market for the first or even second time.
When you think of purchasing a home your brain automatically jumps to money and finance, insuring you will have enough to cover a home loan and still live comfortably is as important as finding just the right home. With so many banks offering the same thing, how do you know who you should go with for a mortgage? What about mortgage brokers and what role do they play?
To help you understand the role of a mortgage broker – here is Leeon Johnston with what you need to know.
A mortgage broker works as an intermediary between you and a lender.
They will work one on one with you to take an overall look of your financial situation and find out your mortgage requirements.
The mortgage broker will then create a shortlist of mortgage deals based on the interest rate, the term of the mortgage, the deposit and the fees charged.
They will then go out to the banks to find a you the best deal for you. A mortgage broker can negotiate the best rates possible and this saves you a lot of time.
They can also advise you on everything you need to know about taking out a mortgage, including KiwiSaver and first home loan grants.
Points to remember
The bank pays the mortgage broker, so you don’t need to worry about fees and expenses.
They work for you to find the best rate that they can with a bank.
Not all mortgage brokers work with every bank so ask who is excluded upfront
Finally if you are not comfortable with your broker you don’t need to use them, ask around and get recommendations, research them and choose the best person for you.